a. How much total interest would Susan pay for each option? b. Which option would be best for Susan, assuming she wants to pay the least amount of interest possible.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
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Chapter4: Time Value Of Money
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Page <
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> of 6
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7. Susan needs to borrow $15,000 dollars. She has 3 options to choose from:
5.5% simple interest for 4 years
• 5.25% interest compounded monthly for 4 years
•5% interest compounded continuously for 4 years
a. How much total interest would Susan pay for each option?
b. Which option would be best for Susan, assuming she wants to pay the least amount of
interest possible.
3:42
a :
梦$ 0
IN
底 )
18
11/20
hp
Transcribed Image Text:ad Exam 4 Review.pdf (1.43 MB) Page < 3 > of 6 ZOOM 7. Susan needs to borrow $15,000 dollars. She has 3 options to choose from: 5.5% simple interest for 4 years • 5.25% interest compounded monthly for 4 years •5% interest compounded continuously for 4 years a. How much total interest would Susan pay for each option? b. Which option would be best for Susan, assuming she wants to pay the least amount of interest possible. 3:42 a : 梦$ 0 IN 底 ) 18 11/20 hp
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