Find compounded interest. Write the correct formula, fill in the formula, use yo

Question

Find compounded interest. Write the correct formula, fill in the formula, use your calculator and write the answ er. (5pts) 18) $6000 at 5.5% compounded continuously for 9 years Find either the future value or present value for simple interest. Write the correct formula, fill in the formula, use your calculator and write the answer. (5pts) 17) Barb is buying a new car for $15,000. Her old car has a trade-in value of $3500. take 3 years to pay off the car, what will be the total amount repaid? Barb 18) Tony and Barb decide to buy new living room furniture worth $8000. decides they should pay off what they owe in 30 monthly payments at 8% interest (a) How much money will they owe for their furniture? (b) What will be their monthly payment? Johnson fall 20

Explanation / Answer

16)

Compounded Interest is Interest on Interest

Compounded Interest = Amount at compounded interest - Amount at simple interest

Compounded Interest = P*ert - (P*R*T/100 + P)

Compounded Interest = 6000*e^(5.5%*9) - (6000*5.5*9/100 + 6000)

Compounded Interest = 6000* 2.718281828459^(5.5%*9) - 8970

Compounded Interest = $ 872.99

17)

Total amount to be repaid = Principal (1+ Rate*time/100)

Total amount to be repaid = (15000-3500) *(1+ 9*3/100)

Total amount to be repaid = $ 14605

18)

a) Money will they owe = P*(1+r*t/100)

Money will they owe =8000*(1+(8*30/12)/100)

Money will they owe = $ 9600

b) Monthly Payment = Money owe/ No of payment

Monthly Payment = 9600/30

Monthly Payment = $ 300

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