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Cash loan $100 20.0% 3 years $6 (100 x .2 x .3) $106 ($100 + $6) Big-screen TV $500 9.0% 4 years $ (500x $ College loan $13,000 4.5% 15 years $ $

User Xeraphim
by
4.6k points

1 Answer

13 votes

Answer:

Cash loan = $160

Big screen TV = $680

College loan = $$21775

Explanation:

Cash loan :

Loan amount or principal = $100

Interest rate, r = 20.0%

Time, t = 3 years

Using the relation :

Simple interest = Principal * rate * time

$100 * 0.2 * 3 = $60

Final amount = loan amount + interest on loan

Final amount = $100 + $60 = $160

Big Screen TV:

Principal = $500

Rate, r = 9.0%

Time, t = 4 years

Interest amount = (500 * 0.09 * 4)

Interest amount = $180

Final amount = principal amount + interest on loan

Final amount = $500 + $180 = $680

College loan

Principal, = $13,000

Rate, r = 4.5%

Time, t = 15 years

Interest amount = (13000 * 0.045 * 15)

Interest amount = $8775

Final amount = principal amount + interest on loan

Final amount = $13000 + $8775 = $21775

User Naim
by
6.4k points
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