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?

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter4: Exponential And Logarithmic Functions
Section4.2: The Natural Exponential Function
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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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