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Lynna [10]
2 years ago
9

Sophia wants to take out a loan of $6,000 with interest that compounds monthly. Use the formula A = P(1 + rn)n∗t to find which o

f these loan terms will have the lowest total cost. A) 2 years at 4% interest B) 3 years at 3% interest C) 4 years at 1% interest D) 5 years at 2% interest
Mathematics
1 answer:
Naddika [18.5K]2 years ago
4 0

Answer:

d

Step-by-step explanation:

FV = P (1 + r/m)^mn

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

m = number of compounding

a. 6000x (1 + 0.04/12)^24 = 6498.86

b. . 6000x (1 + 0.03/12)^36 =6564.31

c. . 6000x (1 + 0.01/12)^48 = 6244.76

d. . 6000x (1 + 0.05/12)^60 =6630.47

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