Please help I have to turn this in, in 2 hours
1 answer:
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Answer:
Difference in total payback = $5734.64
Step-by-step explanation:
Formula for the simple interest payout,
Interest =
P = Principal amount of loan
r = rate of interest (Annually)
t = Duration for the payment
Interest =
= $13050
Total payable amount = 18000 + 13050
= $31050
Formula for the amount payable with compound interest,
Final amount =
Here, t = Duration of investment
r = rate of interest (Annual)
n = Number of compounding per year
Payable amount =
= 18000(1.089)⁴
= $25315.36
Difference in total payback = $31050 - $25315.36
= $5734.64