$60 simple interest is received on a loan each year. When the rate of interest is increased by 0.5%, the simple interest is $70.
1 answer:
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Answer:
a)
Since t is between 0 and 15, and the house was purchased 8 years ago, we have two pairs of values:
- t = 0, V(0) = 42000
- t = 8, V(8) = 67500
<u>Find the slope, m:</u>
- m = (67500 - 42000)/8 = 3187.50
The value of b is 42000, since at t = 0, V = 42000
<u>So the equation is:</u>
- V = 3187.50t + 42000
b)
The graph is attached.
When V = 72500, t = 9.6 (approximately)
c)
When V = 74000
- 74000 = 3187.5t + 42000
- 3187.5t = 32000
- t = 32000/3187.5
- t ≈ 10 years (rounded down)
d)
When V = 80250
- 80250 = 3187.5t + 42000
- 3187.5t = 80250 - 42000
- 3187.5t = 38250
- t = 38250/3187.5
- t = 12 years
