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3 years ago

6

Let v represent the value of a bank acount, in thousands of dollars, t yearsaftertye account is opend at the bank

1 answer:

Liula [17]3 years ago

4 0

Answer:

could you explain it more

Step-by-step explanation:

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3 years ago

Is the eye color of people on commercial aircraft flightseye color of people on commercial aircraft flights a discrete random v

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3 years ago

At the beginning of each of her four years in college, Miranda took out a new Stafford loan. Each loan had a principal of $5,500

kaheart [24]

Answer:

D. $31,337.27

Step-by-step explanation:

We have that the initial amount of the loan is $5500.

Miranda took the loan for 4 years. So, the total present value is $5500×4 = $22,000.

The rate of interest on the loan is 7.5% i.e. 0.075 and it was for the duration of 10 years.

Also, it is given that the loan was compounded annually.

We have the formula as,

$P=\frac{\frac{r}{n}\times PV}{1-(1+\frac{r}{n})^{-t\times n}}$

i.e. $PV=\frac{P\times [1-(1+\frac{r}{n})^{-t\times n}]}{\frac{r}{n}}$

Substituting the values, we get,

i.e. $PV=\frac{P\times [1-(1+\frac{0.075}{12})^{-10\times 12}]}{\frac{0.075}{12}}$

i.e. $22000=\frac{P\times [1-(1+0.00625)^{-120}]}{0.00625}$

i.e. $22000=\frac{P\times [1-(1.00625)^{-120}]}{0.00625}$

i.e. $22000=\frac{P\times [1-0.4735]}{0.00625}$

i.e. $22000=\frac{P\times 0.5265}{0.00625}$

i.e. $P=\frac{22000\times 0.00625}{0.5265}$

i.e. $P=\frac{137.5}{0.5265}$

i.e. $P=261.16$

Thus, the total lifetime cost to pay of the loans compounded annually = 261.16 × 120 = $31,339.2

Hence, the total cost close to the answer is $31,337.27

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