Question
Asked Dec 26, 2019
18 views

Al needs to borrow $15,000 to buy a car. He can borrow the money at 6.7% simple interest for 5 yr or he can borrow at 6.4% interest compounded continuously for 5 yr. 

a. How much total interest would Al pay at 6.7% simple interest?   

b. How much total interest would Al pay at 6.4% interest compounded continuously? 

c.  Which option results in less total interest?

check_circle

Expert Answer

Step 1

a.

Find the simple interest paid by Al at 6.7% interest.

Step 2
Algebra homework question answer, step 2, image 1
fullscreen
Step 3

We have P = $15,000, r = 6.7%, t = 5 yrs.

Substituting the ...

Algebra homework question answer, step 3, image 1
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Math

Algebra

Related Algebra Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: For Exercise, solve the system by using any method. If the system does not have one unique solution,...

A: According to the given information it is required to solve the given system of question:

question_answer

Q: Given g(x) = mx + b, find m and b if g(2) = 1 and g(-4) = 10

A: Given, equation is

question_answer

Q: For Exercise, determine whether the statement is true or false. If a statement is false, explain why...

A: A matrix is invertible if and only if the determinant of the matrix, A is non zero. 

question_answer

Q: For Exercise, determine if the statement is true or false. If a statement is false, explain why. All...

A: The given statement is, “All linear functions with a nonzero slope have an inverse function”.

question_answer

Q: For Exercise, write an equation of the line satisfying the given conditions.The line is parallel to ...

A: Click to see the answer

question_answer

Q: For Exercise, graph the equation. y=sqrt(x+2)

A: Click to see the answer

question_answer

Q: For Exercise, solve the system of equations by using the addition method.  2x+11y=4 3x-6y=5

A: Consider the given equation.The given equations are as follows,

question_answer

Q: a. Write the equation of the ellipse in standard form. b. Identify the center, vertices, endpoints o...

A: The given equation of ellipse is,

question_answer

Q: Heather wants to invest $35,000 of her retirement. She can invest at 4.8% simple interest for 20 yr,...

A: Given values are P = 35,000, r = 4.8% = 0.048 and t = 20.Obtain the interest.