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Algebra 1

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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 - ,

    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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