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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

 

   

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