A payday loan is made for six weeks, where the amount of interest owed per $100 is $20. If you borrow $500 for six weeks, how mu
1 answer:
Answer:
a. $600
b. 173.33%
Step-by-step explanation:
The computation is shown below:
a. For amount owed at the end of six weeks is
= The amount borrowed + interest amount
where,
The amount borrowed is $500
And, the interest is
= $100
So, the amount owed is
= $500 + $100
= $600
b. Now the APR is
Since 20% denotes for the six weeks
So, the annual percentage rate is
=
= 173.33%
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Answer:
Step-by-step explanation:
Given is a function as
Equating to 0 we have equation
If the function f(x) has x intercepts then the solutions are real
Let us use remainder theorem and change of signs rule
f(0) = 1>0
f(-1) = -1+3+1=3
f(-2) = -32+6+1<0
This implies there is a real root between -1 and -2.
f(1) = -1
Since f(0) and f(1) have different signs, there exists a real root between 0 and 1.
f(2) = 32-6+1>0
Since f(1) and f(2) have different signs there exists a real root between 1 and 2.
Thus there are definitely three real solutions as
one between -1 and 0, one between 0 and 1, and third between 1 and 2.