Michael wants to buy some new exercise equipment for his home gym for $156,000 financed at an annual interest rate of 13% using the add-on method. If Michael pays off the loan in 5 years, he will pay $101,400 in interest. If Michael decides instead to pay off the loan in 6 years, how much more interest will he pay than if he paid off the loan in 5 years?
Michael wants to buy some new exercise equipment for his home gym for $156,000 financed at an annual interest rate of 13% using the add-on method. If Michael pays off the loan in 5 years, he will pay $101,400 in interest. If Michael decides instead to pay off the loan in 6 years, how much more interest will he pay than if he paid off the loan in 5 years?
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 65SE: Jamal wants to save 54,000 for a down paymenton a home. How much will he need to invest in anaccount...
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Michael wants to buy some new exercise equipment for his home gym for
$156,000
financed at an annual interest rate of
13%
using the add-on method. If Michael pays off the loan in
5
years, he will pay
$101,400
in interest. If Michael decides instead to pay off the loan in
6
years, how much more interest will he pay than if he paid off the loan in
5
years?Expert Solution
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