Mathematics

Faye borrowed $9600 at 8% per annum compound interest.caculate the interest on the loan for the first year.

  1. 👍
  2. 👎
  3. 👁
  1. A=P(1+r/k) nk
    A=$9600(1+0.08/04)1*4
    A=$9600(1+0.02)1*4
    A=$9600(1.02)1*4
    A=$9600(1.08243216)
    A=$10391.34874
    A=$10391.35(2 d.p)

    CI=Amount-principal
    =$10391.35-$9600
    =$791.35

    1. 👍
    2. 👎
  2. Was the rate stated as 8% per annum, compounded quarterly?

    I would conclude that by looking at your solution.
    IF so, then you are correct

    1. 👍
    2. 👎
    👤
    Reiny
  3. The question is Faye borrowed $9600 at 8% per annum compound interest.
    I)calculate the interest on the loan for the first year.

    1. 👍
    2. 👎
  4. 8/100 × 9600/1 = 768

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. interest math

    On April 12, Michelle borrowed $5,000 from her credit union at 9% for 80 days. The credit union uses the ordinary interest method. a. What is the amount of interest on the loan? $90 b. What is the maturity value of the loan?$5090

  2. math

    On April 12, Michelle Lizaro borrowed $5,000 from her credit union at 9% for 80 days. The credit union uses the ordinary interest method. a. What is the amount of interest on the loan? $ b. What is the maturity value of the loan?

  3. Mathematics

    (a)A loan of 12 000 was borrowed from a bank at 14% per annum Calculate (i) The interest on the loan at the end of the first year (ii) The total amount owing at the end of the first year A repayment of $ 7 800 was made at the

  4. Business Math

    On May 19, Bette Santoro borrowed $3,000 from Resse Bank at a rate of 12½%. The loan is to be repaid on October 8. Assuming the loan is based on exact interest, what's the total interest cost to Bette? A. $265.89 B. $175.89 C.

  1. math

    Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8 percent. The date of the loan was September 20. Janet hoped to repay the loan on January 20. Assuming the loan is based on ordinary interest, Janet will pay back

  2. math

    Belle had the choice of taking out a four year car loan at 8.5% simple interest or a Five year loan at 7.75% simple interest. If she borrows $15,000, how much interest would she pay for each loan? Which option requires less

  3. math

    A person borrowed Rs.20,000 from a bank at a simple interest rate of 12% per annum.In how many years will he owe interest of Rs.3,600?

  4. maths

    The compound interest on a certain sum for 2 years is Rs 41 and simple interest is Rs 40.Then the rate per annum is

  1. math

    faye borrowed $9600 a! $% per annum compound interest - calculate the interest on the loan for the first year

  2. Math Question

    Tom Newman took out a simple interest loan of $1,500.00 at 10 percent interest for 12 months. after 4 payments the balance is 1,100. he pays off the loan when the next payment is due what is the interest? Is it $9.17 Thanks!!

  3. Math

    Find the difference between the simple interest and compound interest on 16000 for 3/2 years at 5 %per annum, compound interest being reckoned half yearly.

  4. math

    A person borrowed Rs.500 @ 3% per annum S.I. and Rs.600 @ 4.5% per annum on the agreement that the whole sum will be returned only when the total interest becomes Rs.126. The number of years, after which the borrowed sum is to be

You can view more similar questions or ask a new question.