1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Black_prince [1.1K]
3 years ago
13

Mia wants to borrow £6000 and repay it, with interest, after two years. she sees two offers for loans: offer 1 compound interest

3% per year offfer 2 compound interest first year 1% second year 3% mia says, iwill payback the same amount because the average of 1% and 5% is 3% is she correct?
Mathematics
1 answer:
AURORKA [14]3 years ago
4 0

Answer:

she is wrong, offer 2 results in lower interests

Step-by-step explanation:

total amount paid if offer 1 is accepted:

$6,000 x (1 + 3%)² = $6,000 x 1.0609 = $6,365.40

she will pay $365.40 in interests

total amount paid if offer 2 is accepted:

($6,000 x 1.01) x 1.05 = $6,060 x 1.05 = $6,363

she will pay $363 in interests

Compounding interest refers to interest that earns more interest itself, e.g. in the first offer, the $180 of interests charged for the first year will earn $5.40 in extra interests. While offer 2 only charges $60 in interests during the first year which will in turn earn $3 of interests. The difference between both offers is that interest charges in offer 1 earn more interests than the interest in offer 2 = $5.40 - $3 = $2.40

You might be interested in
Ella used 3 fourths of lemons to make one half liters of lemonade. If Ella's recipe is for 1 liter of lemonade, how many lemons
erma4kov [3.2K]

Answer:

6 Total lemons

Step-by-step explanation:

1 1/2 lemons per 1 liter of lemonade

1 1/2 times 4

= 6 total lemons

5 0
3 years ago
Clarissa went to her favorite restaurant for dinner. if her meal cost 12.00 and she wants to add a 15 %tip how much is her total
Natalija [7]
12.00*0.15=1.80
12+1.80=13.80
Total bill = $13.80
3 0
3 years ago
Read 2 more answers
Help with number 5 please
Goryan [66]

Answer:

22,5 km

Step-by-step explanation:

6 0
3 years ago
Carle is cutting pieces of string that are exactly 24 3/8 inches long. How many pieces can she cut from a ball of string that ha
iris [78.8K]
The answer is A because 24 3/8 inches is roughly 2 feet, 100/2 is 50, and since there is a small 3/8 value, the answer is 49
5 0
3 years ago
Read 2 more answers
For 3/4 (three fourths) of a pound of peanuts, Jimmy paid $2.25. What is
Lera25 [3.4K]
3 dollars pound because since it is 3/4 you can do: 2.25/3 and get 0.75. Thus means 0.75 is 1/4 a pound. 0.75 x 4 will get you dollars for pound. So 3
3 0
3 years ago
Other questions:
  • Please help me <br><br> dont take my points
    14·2 answers
  • The distance between Boston and Detroit is 702.Jusn has driven 150 how much farther does he have to drive?
    7·1 answer
  • I already got 842 squared=c2 I just need help with simplest radical form
    15·2 answers
  • Which is the graph of f(x) = 3x.
    8·1 answer
  • The probability that a certain football team wins a match is 2/3.Given that the team plays 4 matches, find the probability that
    11·1 answer
  • I need help please ​
    11·2 answers
  • If a video is getting 5,000 views every 10 minutes, how long will it take to reach 60,000 views?
    9·1 answer
  • Write a function to model set of data
    15·1 answer
  • 4. Find CD and X . (3 points) x ^ 3 + 20 30 D x ^ 8 + 22x - 120 will mark brainliest
    12·1 answer
  • Find the surface area of the prism:
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!