Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Answer B. $168.75
Step-by-step explanation:
I took the test and I got it correct and I will tell you guys the other answers if you have these same questions.
1) Scott invests $1000 at a bank that offers 6% compounded annually. Write an equation to model the growth of the investment.
Answer: D) A = 1000(1.06)t
2) Find the maturity value of a loan of $2500 at simple interest that is to be repaid in 8 months. The interest rate is 4.3%.
Answer: B) $2571.67
3) Owen has a loan for $3700 at a rate of 5% annually. If the interest is not compounded, what is the total amount of repayment if the loan is for 7 years?
Answer: D) $4995.00
4) Davis puts $5,000 each year in an account that earns 5% annual interest, compounded annually. His brother Mike puts $5,000 each year in a safe in his bedroom. After the first 10 years of doing this, how much more money does Davis have than Mike? Round your answer to the nearest dollar.
Answer: A) $20,524
5) Ally is buying a speed boat for $10,000 with a down payment of $2,500. The bank approved a simple interest flat rate loan for 5 years at 7% APR. How much are the monthly loan payments? (round to the nearest cent)
Answer: B) $168.75
The monthly loan payments should be [tex]\$168.75[/tex].
Option B is correct.
Simple interest :
Given that, Ally is buying a speed boat for $10,000 with a down payment of $2,500.
Remaining amount Ally have to pay,
[tex]=10000-2500=7500[/tex]
Rate of interest [tex]r=7\%[/tex] , time [tex]t=5[/tex] years and Principal [tex]P=7500[/tex]
Simple interest, [tex]S.I=\frac{P*r*t}{100}[/tex]
[tex]S.I=\frac{7500*7*5}{100} \\\\S.I=2625[/tex]
In 5 years, Ally have to pay,
[tex]=7500+2625=10125[/tex]
In one month, Ally have to pay [tex]=\frac{10125}{60}=\$168.75[/tex]
Learn more about the simple interest here:
https://brainly.com/question/2294792
Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.