Bethany needs to borrow $10,000. She can borrow the money at 5.5% simple interest for 4 yr or she can borrow at 5% with interest compounded continuously for 4 yr. a. How much total interest would Bethany pay at 5.5% simple interest? b. How much total interest would Bethany pay at 5% interest compounded continuously? c. Which option results in less total interest?
Bethany needs to borrow $10,000. She can borrow the money at 5.5% simple interest for 4 yr or she can borrow at 5% with interest compounded continuously for 4 yr. a. How much total interest would Bethany pay at 5.5% simple interest? b. How much total interest would Bethany pay at 5% interest compounded continuously? c. Which option results in less total interest?
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.1: Exponential Functions
Problem 53E: Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and...
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Bethany needs to borrow $10,000. She can borrow the money at 5.5% simple interest for 4 yr or she can borrow at 5% with interest compounded continuously for 4 yr.
a. How much total interest would Bethany pay at 5.5% simple interest?
b. How much total interest would Bethany pay at 5% interest compounded continuously?
c. Which option results in less total interest?
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