First, determine the effective interests given both interest rates.
(1) ieff = (1 + 0.068/12)^12 - 1 = 0.07016
(2) ieff = (1 + 0.078/12)^12 - 1 = 0.08085
Calculating the interests will entail us to use the equation,
I = P ((1 + i)^n - 1)
Substituting the known values,
(1) I = ($5125)((1 + 0.07016)^1/2 - 1)
I = $176.737
(2) I = ($5125)(1 + 0.08085)^1/2 - 1)
I = $203.15
a. Hence, the greater interest will be that of the second loan.
b. The difference between the interests,
d = $203.15 - $176.737
$26.413
Step-by-step explanation:
d=20
r=10
π=3
Well its a simplest form of zero and 6 tenths and if u divide it by 2 youll get 3/5 as a fraction
Answer:
Step-by-step explanation:
Good luck
First you have to find a common denominator which is 8.
1/2 =4/8
7/8 - 4/8 = 3/8
So the answer is 3/8.
