Stephanie is taking out a loan in the amount of $15,000. Her choices for the loan are a 4-year loan at
1 answer:
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To solve this we are going to use the future value of annuity due formula: ![FV=(1+ \frac{r}{n} )*P[ \frac{(1+ \frac{r}{n})^{kt}-1 }{ \frac{r}{n} } ]](https://tex.z-dn.net/?f=FV%3D%281%2B%20%5Cfrac%7Br%7D%7Bn%7D%20%29%2AP%5B%20%5Cfrac%7B%281%2B%20%5Cfrac%7Br%7D%7Bn%7D%29%5E%7Bkt%7D-1%20%7D%7B%20%5Cfrac%7Br%7D%7Bn%7D%20%7D%20%5D)
where
is the future value
is the periodic deposit
is the interest rate in decimal form
is the number of times the interest is compounded per year
is the number of deposits per year
We know for our problem that
and 
. To convert the interest rate to decimal form, we are going to divide the rate by 100%: 
. Since Ruben makes the deposits every 6 months, 
. The interest is compounded semiannually, so 2 times per year; therefore, .
Lets replace the values in our formula:
![FV=(1+ \frac{0.1}{2} )*420[ \frac{(1+ \frac{0.1}{2})^{(2)(15)}-1 }{ \frac{01}{2} } ]](https://tex.z-dn.net/?f=FV%3D%281%2B%20%5Cfrac%7B0.1%7D%7B2%7D%20%29%2A420%5B%20%5Cfrac%7B%281%2B%20%5Cfrac%7B0.1%7D%7B2%7D%29%5E%7B%282%29%2815%29%7D-1%20%7D%7B%20%5Cfrac%7B01%7D%7B2%7D%20%7D%20%5D)
We can conclude that the correct answer is <span>$29,299.53</span>
where
We know for our problem that
Lets replace the values in our formula:
We can conclude that the correct answer is <span>$29,299.53</span>
Answer:
wrong as his calculation was incorrect at initial level itself when he found the result of the division
Step-by-step explanation:
Andre said
3 ÷
but andre calculated it as
Hence his calculation was incorrect at initial level itself