1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
d1i1m1o1n [39]
3 years ago
10

You have a part time job in your junior year of high school. You need to borrow $2,000 to purchase a used car to drive to work.

The local bank will lend you money for 2 years at a rate of 9% compounded quarterly. Your uncle offers to lend you the money in the form of a promissory note for 2 years with an annual simple interest rate of 6%. How much money will you save by borrowing the money from your uncle?
Mathematics
1 answer:
VARVARA [1.3K]3 years ago
3 0

Answer:

$149.66

Step-by-step explanation:

Step 1

Calculate Total Amount payable to the bank using compound interest

Total Amount payable (A) =

P(1 + r/n)^nt

P = Principal = $2000

r = Interest rate = 9% = 0.09

n = compounding interest = quarterly = 4

t = time in years = 2

Total Amount payable

= 2000(1 + 0.09/4)^0.09 × 2

A = $ 2,389.66

Interest = A - Principal

= $ 2,389.66 - $ 2,000.00

I (interest) = $ 389.66

Step 2

Calculate the Total amount payable to his uncle using simple interest.

Total Amount (A) = P(1 + rt)

P = Principal = $2000

r = Interest rate = 6% = 0.06

t = time in years = 2

A = 2000(1 + 0.06 × 2)

A = $2,240

A - Principal

= $ 2,240 - $ 2,000.

I (interest) = $240

Step 3

The amount of money you will save by borrowing the money from your uncle is calculated as:

Amount payable to the bank - Amount payable to your uncle

= $ 2,389.66 - $2,240

= $149.66

Therefore, the amount of money you will save by borrowing the money from your uncle is $149.66

You might be interested in
Hannah's monthly housing budget is $1,750. Her monthly costs are $230 for insurance, $98 for utilities, and $250 for taxes. Whic
Olegator [25]
She can afford t he $98
7 0
3 years ago
Read 2 more answers
A name brand cereal is on sale and costs $4.50 for an 18.2oz box. The great value brand version of the cereal costs $4.03 for a
KengaRu [80]

Answer:

You do 4.50 divided by 18.2 and that equals 0.25 cents Pero oz and then you do 4.03 divided by 13.1 which that equals 0.31 cents per oz which that would mean the name brand cereal that’s on sale cost less Per oz

6 0
3 years ago
How do you collect like terms
pentagon [3]
Add them together 
e.g - 5a +6+6a+7
= 11a+13

6 0
3 years ago
Determine the solution to the following system of equations: 2x+4y=-12 x+2y=-2
jolli1 [7]

Answer:

undefined/no solution

Step-by-step explanation:

you use elimination to solve. So multiply 2x+4y=-12 by 1 and x+2y=-2 by 2. then you subtract 2x+4y=-12 by 2x+4y=-4 and get 0y=-8. Anything divided by 0 is undefined/no solution because you can't divide anything by 0.

4 0
3 years ago
Read 2 more answers
The distances (y), in miles, of two cars from their starting points at certain times (x), in hours, are shown by the equations b
Harlamova29_29 [7]
2hrs, 142miles
42x+58=55x+32
13x=26
x=2hrs <---- answer
42*2+58=142
55*2+32=142mi <----answer
7 0
3 years ago
Read 2 more answers
Other questions:
  • Name the property that is illustrated in each equation
    5·1 answer
  • Lin has picked 1 ½ cups of raspberries, which is enough for ¾ of a cake. How many cups does she need for the whole cake?
    8·1 answer
  • The square floor of a tent has an area of 49sq. feet. What is the length of the side of the tent?
    15·1 answer
  • Solve by factoring
    12·2 answers
  • Sasha made a small pizza with four pieces of ham in five pieces of pineapple she is making a large pizza with 12 pieces of ham u
    15·1 answer
  • The line symmetry is closely related to which transformation
    10·1 answer
  • Misha used 1/4 of a carton of 12 eggs to make a omelet.How many eggs did she use?
    11·2 answers
  • Which of the following is the best approximation?
    12·1 answer
  • Can the remainder in a division problem ever equal the divisor? Why or why not?
    9·1 answer
  • Hunter started with the following model to show the problem 1.45 : 5. w 3 To complete the division model of 1.45 = 5, how many h
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!