Mary needs to borrow $11,000. She can borrow the money at 6.5% simple interest for 5 yr or she can borrow at 5% with interest compounded continuously for 5 yr. (a) How much total interest would Mary pay at 6.5% simple interest? (b) How much total interest would Mary pay at 5% interest compounded continuously? (c) Which option results in less total interest?

Mary needs to borrow $11,000. She can borrow the money at 6.5% simple interest for 5 yr or she can borrow at 5% with interest compounded continuously for 5 yr. (a) How much total interest would Mary pay at 6.5% simple interest? (b) How much total interest would Mary pay at 5% interest compounded continuously? (c) Which option results in less total interest?

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter5: Inverse, Exponential, And Logarithmic Functions

Section5.3: The Natural Exponential Function

Problem 40E

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