Bethany needs to borrow $11,000. She can borrow the money at 5.5% simple interest for 6 yr or she can borrow at 4% with interest compounded continuously for 6 yr. (a) How much total interest would Bethany pay at 5.5% simple interest? (b) How much total interest would Bethany pay at 4% interest compounded continuously? (c) Which option results in less total interest?
Bethany needs to borrow $11,000. She can borrow the money at 5.5% simple interest for 6 yr or she can borrow at 4% with interest compounded continuously for 6 yr. (a) How much total interest would Bethany pay at 5.5% simple interest? (b) How much total interest would Bethany pay at 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
Problem 2E
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