SOLUTION: Suppose that a loan of $6000 is given at an interest rate of 9% compounded each year.
Assume that no payments are made on the loan.
Find the amount owed at the end of 1 year
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-> SOLUTION: Suppose that a loan of $6000 is given at an interest rate of 9% compounded each year.
Assume that no payments are made on the loan.
Find the amount owed at the end of 1 year
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Question 1168218: Suppose that a loan of $6000 is given at an interest rate of 9% compounded each year.
Assume that no payments are made on the loan.
Find the amount owed at the end of 1 year
Find the amount owed at the end of 2 years Answer by ikleyn(52858) (Show Source):
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Suppose that a loan of $6000 is given at an interest rate of 9% compounded each year.
Assume that no payments are made on the loan.
(a) Find the amount owed at the end of 1 year
(b) Find the amount owed at the end of 2 years
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(a) The amount owed at the end of 1 year is 6000 + 0.09*6000 = 6,540 dollars.
(b) The amount owed at the end of 2 years is 6540 + 0.09*6540 = 7,128.60 dollars.
