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?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
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The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
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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?
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