3 years ago

Add to find the cost of 1 day's rental

Mathematics

1 answer:

Arlecino [84]3 years ago

7 0

Um ok what is this.......

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Felipe borrowed $8000 at a rate of 16.5%, compounded monthly. Assuming he makes no payments, how much will he owe after 7 years?

Gelneren [198K]

Answer:

$25,193.17

Explanation:

Given:

• Principal Felipe borrowed, P=$8000

• Annual Interest Rate, r=16.5%=0.165

• Compounding Period, k=12 (Monthly)

• Time, t=7 years

We want to determine how much he will owe after 7 years.

In order to carry out this calculation, use the compound interest formula below:

$A(t)=P\mleft(1+\frac{r}{k}\mright)^{tk}$

Substitute the values defined above:

$A(t)=8000\mleft(1+\frac{0.165}{12}\mright)^{12\times7}$

Finally, simplify and round to the nearest cent.

$\begin{gathered} A(t)=8000(1+0.01375)^{84} \\ =8000(1.01375)^{84} \\ =\$25,193.17 \end{gathered}$

After 7 years, Felipe will owe $25,193.17.

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Step-by-step explanation:

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