Posted by **Lola** on Tuesday, November 9, 2010 at 10:19pm.

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.

- Algebra 1 -
**Reiny**, Tuesday, November 9, 2010 at 11:36pm
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

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