How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/
1 answer:
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Answer:
So then the annual pay would be $ 9218.564 for this case
Explanation:
For this question we can use the Equivalent annual value (A) given by the following expression:
Where represent the pesent value
since the rate is yearly
since we have 4 years to pay
So then we have everything to replace and we got:
So then the annual pay would be $ 9218.564 for this case
And this amount would be paid each year in order to pay all the money after 4 years.