A finance company offers cheaper interest rates if you borrow a larger sum of money for shorter time period. A borrower is offered $7000 at 12% or $10080 at 10%. If the tome for the lager loan is 6 months less but the total interest is the total interest is the same, find the time to repay for each loan.
interest for lower rate loan = 7000(1.1)^n - 7000
interest for higher rate loan = 10080(1.12)^(n-.5) - 10080
10080(1.12)^(n-.5) - 10080 = 7000(1.1)^n - 7000
10080(1.12)^(n-.5) = 7000(1.1)^n - 7000 + 10080
1008(1.12)^(n-.5) = 700(1.1)^n + 308
no easy way to solve for n
I would try some values of n, until
left side = appr. right side