document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1159784>Question 1159784</A>: <I><SPAN STYLE=\"word-break: break-all;\"> To buy a laptop computer, Aline wants to borrow $2000 for 3 years. She lives near two banks.<BR>\n" );
document.write( "The first bank offers the amount with a 5% simple interest rate.<BR>\n" );
document.write( "1. How much interest will she pay at the end of the third year at an annual simple interest<BR>\n" );
document.write( "rate of 5%?<BR>\n" );
document.write( "2. Compute the future value.<BR>\n" );
document.write( "The second bank offer the amount with a 6% interest rate compounded annually.<BR>\n" );
document.write( "3. How much will Aline pay at the end of the third year?<BR>\n" );
document.write( "4. Which offer is better? Justify. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #782898 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=782898\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> simple interest is I=prt or 2000*0.05*3=$300 interest and payback of $2300 needed\r<BR>\n" );
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document.write( "second is 2000(1+.06)^3<BR>\n" );
document.write( "=$2382.03 needed to pay it back\r<BR>\n" );
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document.write( "the first is because it is 5% and not 6% just to start and it isn't compounding, which means one is not paying interest on the interest.  <BR>\n" );
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