Rachelle got a bank loan of $650 at an annual interest rate of 9.5%. The amount owed is represented by the equation A = 650 + (0.095 × 650)n, where A is the total amount Rachelle owes. and n is the number of years. What will Rachelle owe after 4 years? How long will it be before she owes 1500 dollars?
To find out what Rachelle will owe after 4 years, we can plug in n = 4 into the equation A = 650 + (0.095 × 650)n:
A = 650 + (0.095 × 650) × 4
A = 650 + 247
A = 897
Therefore, after 4 years, Rachelle will owe $897.
Next, to find out how long it will be before she owes $1500, we need to solve for n in the equation A = 1500:
1500 = 650 + (0.095 × 650)n
850 = 0.095 × 650 × n
850 = 61.75n
n = 13.77
Rachelle will need approximately 13.77 years to owe $1500.