66032idn
Answered

Explore a diverse range of topics and get answers from knowledgeable individuals on IDNLearn.com. Ask your questions and receive reliable, detailed answers from our dedicated community of experts.

Scott took out a 72 month loan for $35,000 to purchase a new boat. If Scott paid $8,925 in simple interest, what was the interest rate?

Sagot :

AMITMISHRAidn

Answer:

Option 4.7% = 3,500 x 4.7% =$164.50 simple annual interest.

82.25 this is what Scott will pay in 6 months at simple interest.

 

Option 4.2% =3,500 x (1 +0.042/12)^6 =3,500 x 1.0035^6=$3,574.15.

3,500 =$74.15 this is what Scott will pay in 6 months at compounded interest.

 

The compound option is cheaper by: 74.15 =$8.10.

Answer: 4.75

Step-by-step explanation:

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Find clear answers at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.