Posted by Annie on Thursday, January 19, 2012 at 10:06pm.
Loan #1
Year Amount owed
1 $3796
2 $3942
3 $4088
Loan # 2
Year Amount owed
1 $977.53
2 $1036.18
3 1098.35
For loan #1 is simple interest. Loan #2 is compound interest
How much was each loan originally
Determine the future value of each loan after 10 years
No one has answered this question yet

math  Reiny, Thursday, January 19, 2012 at 11:41pm
#1  simple interest,
interest earned in 1st year = 39423796 = 146
rate = 146/3796 = .0385 or 3.85%
check : is 2(146) + 3796 = 4088 ? , YES!
#2, let the rate be i
for 1st year ...
977.53(1+i) = 1036.18
1+i = 1.059998
i = .059998 or .06 = 6%
check: is 977.53(1.059998)^2 = 1098.35 ? YES!
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