Concept explainers
Finance The formula that approximates the annual interest rate
where
(a) Approximate the annual interest rate for a five-year car loan of
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College Algebra
- In the formula I=prt for simple interest, P stands for __________, r for _________, and t for__________.arrow_forwardThe following formula is used for figuring out a monthly home mortgage payment: 7(12t) r Lr1+ 12 M = 12t 12 1+ 12 -1 Where: L = the loan amount in dollars the annual interest rate expressed as decimal t = the number of years of the loan M= the monthly payment in dollars r = You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year mortgage at 6.75% annual interest rate for the cost of the house after they receive a 10% down payment. A. Determine the loan amount? B. How much their monthly payment will be? C. At the end of the 30-years, how much total money will you have paid to Bank of America for your home? In another word how much did the $275,599.00 house really cost the couple? D. How much interest will they have paid? E. How many of her monthly payment go toward the interest? F. What percent increase over the cost of the home does this interest represent? G. Redo and re-answer all questions, but this time for 15 years? Do analysis…arrow_forwardHakim has $60 in a savings account that earns 5% annually. The interest is not compounded. How much interest will he earn in 1 year? Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.arrow_forward
- A hospital purchases an ultrasound machine for $70,000 original cost. The hospital expects the useful life of the machine to be 15 years, at which time its value will have depreciated to $6,000 salvage value. The hospital uses the declining balances method for depreciation, the annual depreciation rate r is given by the formula r = 1 –I In the formula above, n, is the useful life of the item (in years), S is the salvage value (in dollars), and C is the original cost (in dollars). What annual depreciation rate, r, did the hospital use? Round to the nearest hundredth. 96 Blank 1:arrow_forwardLogan has $80 in a savings account that earns 10% interest per year. The interest is not compounded. How much interest will he earn in 1 year? Use the formula i = prt, where i is the interest earned, p is the principal %3D (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.arrow_forwardA college student receives an interestfreeloan of $8250 from a relative. The student will repay$125 per month until the loan is paid off. Express the amount P (in dollars) remaining to be paid in terms of time t (in months).arrow_forward
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