Answered

Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Calculate the interest and total amount due at the end of the loan for both simple and compound interest. Loan YearsRate(a)$1,00025%(b)$1,50056%(c)$10,0001010%(d)$25,0001515%(e)$47,7502020%You should have 4 values for your final answer:1. Simple interest total amount duei. Simple interest total interest 2. Compound interest total amount due 3. Compound interest total interest

Sagot :

Solution :

a). Interest for the simple interest [tex]$= 1000 \times 5 \times 2$[/tex]

                                                       = $ 100

    Amount due for the simple interest = $ 1000 + $ 100

                                                                = $ 1100

    Amount due for the compound interest [tex]$= 1000 \times (1.05)^2$[/tex]

                                                                       = $ 1102.50

   Interest for the compound interest = $ 1102.50 - $ 1000

                                                             = $ 102.50

b). Interest for the simple interest [tex]$= 1500 \times 6 \times 5$[/tex]

                                                       = $ 450

    Amount due for the simple interest = $ 1500 + $ 450

                                                                = $ 1950

    Amount due for the compound interest [tex]$= 1500 \times (1.06)^5 $[/tex]

                                                                       = $ 2007.34

   Interest for the compound interest = $ 2007.34 - $ 1500

                                                             = $ 507.34

c). Interest for the simple interest [tex]$= 1000 \times 10 \times 10$[/tex]

                                                       = $ 100000

    Amount due for the simple interest = $ 10000 + $ 10000

                                                                = $ 20000

    Amount due for the compound interest [tex]$= 10000 \times (1.10)^{10}$[/tex]

                                                                       = $ 25937.42

   Interest for the compound interest = $ 25937.42 - $ 10000

                                                             = $ 15937.42

d).  Interest for the simple interest [tex]$= 25000 \times 15 \times 15$[/tex]

                                                       = $ 56,2500

    Amount due for the simple interest = $ 25000 + $ 56,250

                                                                = $ 81,250

    Amount due for the compound interest [tex]$= 25000 \times (1.15)^{15} $[/tex]

                                                                       = $ 203,426.54

   Interest for the compound interest = $ 203,426.54 - $ 25,000

                                                             = $ 178,426.54

e). Interest for the simple interest [tex]$= 47,750 \times 20 \times 20$[/tex]

                                                       = $ 191,000

    Amount due for the simple interest = $ 47,750 + $ 191,000

                                                                = $ 238,750

    Amount due for the compound interest [tex]$= 47,750 \times (1.20)^{20} $[/tex]

                                                                       = $ 1,830,620.40

   Interest for the compound interest = $ 1,830,620.40 - $ 47,750

                                                             = $ 1,782,870.40

 

   

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.