The following information is known about a loan.
2 answers:
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Using simple interest, we have that:
A) The interest due after 8 months is $11,272.33.
B) The total value of the investment will be of $189,986.24.
The amount of interest earning using <em>simple interest</em>, after <u>t years</u>, with an <u>yearly interest rate of i</u> and an <u>initial investment of P</u> is given by:
In this problem:
- Deposit of $178,000, hence
.
- Interest rate of 9.5% per year, hence
.
- 8 months, the time is in years, hence
Item a:
The interest due after 8 months is $11,272.33.
Item b:
For the second interest, we consider , hence:
The total value will be composed by:
- The initial deposit of $178,000.
- The first interest of $11,272.33.
- The second interest of $713,91.
Hence, it will be:
The total value of the investment will be of $189,986.24.
A similar problem is given at brainly.com/question/13176347