Question
Find the time required for a $600 loan at 4% to earn $72 interest. Find the...
Find the time required for a $600 loan at 4% to earn $72 interest.
Find the future value of a loan for $1,350 at 3.8% for 4 years.
Consider a loan of $1750 at 4 and one half for 6 years.
a. Find the discount
b. Find the amount of money received.
c. Calculate the true interest rate, to the nearest tenth of a percent.
Homework Answers
Answer #1
The principle amount of loan is 600.
The interest rate is 4 percent.
The simple interest is 72.
The formula of simple interest is given by:
Hence, the time required for a 600 loan at 4% to earn 72 interest is 3 years.
The future value of a loan for 1,350 at 3.8% for 4 years is calculated as:
Hence, the future value of a loan for 1,350 at 3.8% for 4 years is 1567 dollars.
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