Isabel wants to buy a new boat but needs money for the down payment. Her parents agree to lend her money at an annual rate of 4%, charged as simple interest. They lend her $4000 for 3 years. She makes no payments except the one at the end of that time. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Isabel have to pay? (b) What will the total repayment amount be (including interest)?
Isabel wants to buy a new boat but needs money for the down payment. Her parents agree to lend her money at an annual rate of 4%, charged as simple interest. They lend her $4000 for 3 years. She makes no payments except the one at the end of that time. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Isabel have to pay? (b) What will the total repayment amount be (including interest)?
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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Isabel wants to buy a new boat but needs money for the down payment. Her parents agree to lend her money at an annual rate of 4%, charged as simple interest. They lend her $4000 for 3 years. She makes no payments except the one at the end of that time.
Answer the following questions. If necessary, refer to the list of financial formulas.
(a) How much total interest will Isabel have to pay?
(b) What will the total repayment amount be (including interest)?
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