Ian borrows $3580 at 31% simple interest per year. When Ian pays the loan back 7 years later, how much interest does Ian pay?
2 answers:
You might be interested in
Answer:
Equation:
Worth more in 32 yr than in 17 yr by: $1199.92
Step-by-step explanation:
THe compound growth formula is:
Where
F is the future amount (here, A(t))
P is the initial amount, here 5000
r is the rate of growth in decimal, 1.2% = 1.2/100 = 0.012
n is the time in years
Thus, we can say the function would be:
Now, we want how much more it will be worth when 17 years and 32 years. We find the future amount, A(t), when n= 17 and n = 32 and find the difference. Shown below:
and
So, it will be worth more by:
7323.97 - 6124.05 = $1199.92