Saturday

January 24, 2015

January 24, 2015

Posted by **Marisol** on Thursday, April 10, 2008 at 7:48pm.

You borrow $7000 from a bank for 3 years at an interest rate of 10% per year compounded daily.(Assume there are 365 days in every year)

a) HOw much do you pay the bank back in total?

b)How much interest did the bank earn from you?

A=?

P=7000

i=0.000273973

n=1095

A=P(1+i)n( n is an exponent)

A=7000(1+0.000273973)1095

A=7000(1.000273973)1095

A=7000(1.3498039)

A=9448.63

b) ???

- math -
**drwls**, Friday, April 11, 2008 at 1:39amAfter each year of daily componding, the balanced owed increases by a factor

[1 + 0.1/365]^365 = 1.1051558

After three years the balance owed has increased to 7000*(1.1051558)^3 = $9448.62

We pretty much agree. The one cent difference may be due to using a different humber of significant figures.

The interest earned by the bank is all but $7000 of that, $2448.62

**Answer this Question**

**Related Questions**

Math - 3(-5)squared -2/-5(2)/2 squared I don't get the second part but... any ...

World History - "Why did farming start at different places and at different ...

Math - Serena wanst to borrow $15 000 an pay it back in 10 years. Interest rates...

VB - I am new here; say to everyone first. Here is the a question for coding ...

Math - Serena wants to borrow $15 000 and pay it back in 10 years. Interest ...

Biology 202 - Can someone please help me with one part of this question.... ...

same type of binomial theorem question - Question: Find the first 3 terms in the...

Correted Bob can you re-check? - So i pretty much had them right the first time ...

Algebra - During the first part of a trip, a canoeist travels 57 miles at a ...

math algebra - Mrs. martinez has $10,000 to invest.One bank offers her a return ...