Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
Sagot :
Using simple interest, it is found that the interest rate for the 12-month loan is of 6.74%.
Simple Interest
Simple interest is used when there is a single compounding per time period.
The amount of money after t years in is modeled by:
A(t) = A(0)(1 + rt)
In which:
- A(0) is the initial amount.
- r is the interest rate, as a decimal.
In this problem, we have that the parameters are given by:
t = 1, A(0) = 1900, A(t) = 12 x 169 = 2028.
We have to solve for r to find the APR, hence:
A(t) = A(0)(1 + rt)
2028 = 1900(1 + r)
1 + r = 2028/1900
1 + r = 1.0674.
r = 0.0674.
Hence, the interest rate for the 12-month loan is of 6.74%.
More can be learned about simple interest at https://brainly.com/question/25296782
#SPJ1
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
