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jarptica [38.1K]
2 years ago
6

A $22,000 loan was taken out. If $24,805 is due at the end of the loan after being compounded daily at 2.5%, how many

Mathematics
1 answer:
Alex777 [14]2 years ago
3 0

9514 1404 393

Answer:

  4.8 years

Step-by-step explanation:

Solving the compound interest formula for the number of years gives ...

  t = log(A/P)/(n·log(1 +r/n))

where principal P invested at rate r compounded n times per year produces value A after t years.

  t = log(24805/22000)/(365·log(1 +0.025/365)) ≈ 4.800

The loan was for 4.8 years.

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horrorfan [7]
Okay. The formula for simple interest is prt. You multiply the principal (initial amount) by the rate (percentage) by the time (months or years). $1,800 is the principal and 6.5% is the percentage rate. 1,800 * 6.5% (0.065) is 117. You earn $117 in interest annually. The time period is 30 months. There are 12 months in 1 year. Divide the amount of months by 12 to put it in a decimal. 30/12 is 2.5. Now, multiply 117 by 2.5 to find the total amount of interest earned. 117 * 2.5 is 292.5. There. The total amount of interest earned is $292.50.
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3 years ago
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Step-by-step explanation:

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3 years ago
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6 0
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Read 2 more answers
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Step-by-step explanation:

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