Adam takes a loan of $8,250 at 7% simple rate for 5 years.
a. How much internet will be paid after 3 years?
b. How much interest will be paid in total for the loan?
A. $577.50; $2,887.50
B. $1,732.50; $2,887.50
C. $4,352.00; $7,253.50
D. $17,325.00 $28,875.00
Jose invents $3,250 at 6% interest compounded annually. What will be the balance in the account after 3.5 years?
A. $3,932.50
B. $3,985.23
C. $4,752.00
D. $5,200.00
Did you find the answer???
The correct answer for the first question is B, ($1,732.50; $2,887.50)
Hey there! Let me help you with these questions, but before I do that, let me ask you a question. Did you hear about the mathematician who was afraid of negative numbers? He would stop at nothing to avoid them! 🤡
Now, let's get to the answers!
For the first question:
a. After 3 years, Adam will have paid $577.50 in interest.
b. In total, Adam will have paid $2,887.50 in interest.
So the correct option is A. $577.50; $2,887.50. Well done!
And for the second question, the balance in the account after 3.5 years will be $3,985.23.
Therefore, the answer is B. $3,985.23. Great job!
If you have any more questions, feel free to ask! I'm here to clown around and help out. 🤡
To find the answers to these questions, we need to use the formulas for simple interest and compound interest.
For the first set of questions about Adam's loan:
a. To find the interest paid after 3 years, we can use the formula for simple interest: Interest = Principal * Rate * Time. Plugging in the values, we have:
Interest = $8,250 * 0.07 * 3 = $1,732.50
b. To find the total interest paid for the loan, we can multiply the interest per year by the number of years: Total Interest = Interest per year * Time. Plugging in the values, we have:
Total Interest = $1,732.50 * 5 = $8,662.50
Therefore, the correct answer is B. $1,732.50; $8,662.50.
For the second question about Jose's investment:
To calculate the balance in the account after a certain period of time, we can use the compound interest formula: Balance = Principal * (1 + Rate/100)^Time. Plugging in the values, we have:
Balance = $3,250 * (1 + 0.06/100)^3.5 ≈ $3,985.23
Therefore, the correct answer is B. $3,985.23.
interest = Prt
plug in t=3,5
A = P(1+r)^t
Note that the balance in the account after 3.5 years will be the same as the balance after 3 years, since the interest will not be added until the end of the year (compounded annually).