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monitta
3 years ago
12

Tom brown decided to purchase a new bike on an installment loan.The bike was $300.00He agreed to pay $30 a month for 12 months .

What is the finance charge in dollars
Mathematics
1 answer:
anyanavicka [17]3 years ago
5 0

Answer:

The answer is $60. $30 × 12 = $360 – $300 = $60.

Step-by-step explanation:

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At what value of x does the graph of the function f(x) have a vertical asymptote?
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When the effective interest rate is 9% per annum, what is the present value of a series of 50 annual payments that start at $100
ser-zykov [4K]

Answer:

$1,109.62

Step-by-step explanation:

Let's first compute the <em>future value FV.</em>  

In order to see the rule of formation, let's see the value (in $) for the first few years

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<u>End of year 2 (capital + interest + new deposit)</u>

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<u>End of year 3 (capital + interest + new deposit)</u>

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and we can see that at the end of year 50, the future value is

\bf FV=1,000*(1.09)^{50}+10(1+1.09+(1.09)^2+...+(1.09)^{49}

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\bf 1+1.09+(1.09)^2+...+(1.09)^{49}

is the <em>sum of a geometric sequence </em>with common ratio 1.09 and is equal to

\bf \frac{(1.09)^{50}-1}{1.09-1}=815.08356

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\bf FV=1,000*(1.09)^{50}+10*815.08356=82,508.35564

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\bf PV=\frac{FV}{(1.09)^{50}}=\frac{82508.35564}{74.35572}=1,109.616829\approx \$1,109.62

rounded to the nearest hundredth.

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3 years ago
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Answer:

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