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2 years ago

You borrowed 43,800 at a SIMPLE interest rate of 4.8%. If you pay it back in 2 years, how much

Mathematics

1 answer:

Naddik [55]2 years ago

3 0

Answer:

I = $4204.8

Step-by-step explanation:

Given that,

Principal, P = $43,800

Interest rate = 4.8%

Rate = 2 years

We need to find the interest that is paid back. We know that, simple interest is given by :

$I=\dfrac{PRT}{100}$

Put all the values,

$I=\dfrac{43800\times 4.8\times 2}{100}\\\\=\$4204.8$

So, the required interest is equal to $4204.8 .

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I don’t know if I’m right

fgiga [73]

Answer:

A: geometric; 4 times

B: arithmetic: 4 more

Step-by-step explanation:

An arithmetic model is a linear model, where the rate of change is constant. Growth or decay is by a constant amount from one interval to the next.

A geometric model is an exponential model, in which the rate of change is proportional to the amount. Growth or decay is by a constant factor from one interval to the next.

The equation for the sequence is given in "explicit" form:

$A_n=2^{2n}$

The exponent can be split so this can be rewritten as ...

$A_n=(2^2)^n=4^n$

If this were written in recursive form, it would look like ...

$A_0=1,\ A_n=4\times A_{n-1}$

The fact that terms are related by a constant factor tells you the model is geometric. The factor tells you each hour the population is 4 times what it was in the previous hour.

The given equation is in "recursive" form. It tells you each term is 4 more than the previous one. This constant difference between terms means the model is arithmetic.

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<em>Additional comment</em>

In general, words like "more" or "increase" refer to addition, and the words "times" or "factor" refer to multiplication.

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2 years ago

Could someone help me

nydimaria [60]

Answer: TUV = SRV

Step-by-step explanation:

Its a parrolellogram and two angles are given, meaning you can find every angle.

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2 years ago

How Much Have I Saved? Portfolio

avanturin [10]

The time value of money calculation can be performed using formula equations or online calculators.

The correct responses are;

1) Option 3

2) Option 2

3) The difference in principal is approximately $8,000

The difference in interest earned is approximately $2,977.87

4) It is better to invest more money at the beginning of the 30 years

Reasons:

Option 1: Present value = 0

Amount invested per month, A = $25/month

The Annual Percentage Rate, APR, r = 3.25%

Number of years = 30

The future value of an annuity is given by the formula;

$\displaystyle FV_{A} = \mathbf{A \cdot \left (\frac{ \left(1 + \frac{r}{m} \right)^{m\cdot t} - 1}{\frac{r}{m} } \right)}$

In option 1, m = 12 periods per year

Therefore;

$\displaystyle FV_{A} = 25 \times \left (\frac{ \left(1 + \frac{0.0325}{12} \right)^{12 \times 30} - 1}{\frac{0.0325}{12} } \right) \approx \mathbf{15,209.3}$

Contribution = $25 × 12 × 30 = $9,000

Total interest earned = $15,209.3 - $9,000 = $6,209.3

Final balance = $15,209.3

Option 2: Present value = 0

Amount, A = $75/quarter

m = 4 periods per year

The Annual Percentage Rate, APR = 4.00%

Therefore;

The effective interest rate is therefore;

$\displaystyle r_{eff} = \left(1 + \frac{0.04}{4} \right)^4 - 1 \approx \mathbf{0.04060401}$

$\displaystyle FV_{A} = 75 \times \left (\frac{ \left(1 + \frac{0.04060401}{4} \right)^{4 \times 30} - 1}{\frac{0.04060401}{4} } \right) \approx 17,437.7$

Using an online calculator, FV = $17,467.04

Contribution = $75 × 4 × 30 = $9,000

Total interest earned = $17,467.04 - $9,000 = $8,467.04

Final balance = $17,467.04

Option 3: Present value = $1,000

APR = 6.25%

m = 12 period per year

Number of years, t = 30 years

Therefore;

$\displaystyle FV = \left (1 + \frac{0.0625}{12} \right)^{12 \times 30} \approx \mathbf{6,489.17}$

Contribution = $1,000

Total interest earned = $6,489.17 - $1,000 = $5,489.17

Final balance = $6,489.17

The table of values is therefore;

$\begin{tabular}{|c|c|c|c|}Option \# &Contribution &Total Interest Earned&Final Balance\\1&\$9,000&\$6,209.3 & \$15,209.3\\2&\$9,000&\$8,467.04 &\$17,467.04\\3&\$1,000&\$5,489.17&\$6,489.17\end{array}\right]$

1) The option that has the least amount invested are <u>option 3</u>

Option 3 investment plan is a present value of $1,000, invested for 30 years at 6.25% APR compounded monthly.

2) <u>Option 2</u> yielded the highest amount at the end of 30 years, given that the APR is higher than the APR for option 1, although the amount invested over the period are the same.

The basis of option 2 investment plan is $75 invested quarterly at 4.00% APR compounded monthly for 30 years.

3) The difference in the principal invested for the highest and lowest final balance is $9,000 - $1,000 = <u>$8,000</u>

The difference in the interest earned is; $8,467.04 - $5,489.17 = <u>$2,977.87</u>

4) In option 1 the present value is zero, therefore zero amount was invested at the beginning.

The interest to investment ration is 6,209.3:9,000 ≈ 0.7:1

In option 3, all the money was invested at the beginning.

The interest to investment ratio of option 3 is; 5,489.17:1,000 ≈ 5.5:1

Given that the interest to investment ratio, which is the return on investment is larger when more money is saved at the beginning as in option 3, <u>it is better to invest more money at the beginning</u>.

Learn more about future value of an annuity here:

brainly.com/question/8243704

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