Lenders such as banks, credit unions, and mortgage companies make loans. The person receiving the loan usually pays the loan off in small payments over a long period of time. The lender earns money by charging interest, which is based on a percentage of the amount that is borrowed. There are different types of interest. Car loans are usually calculated using the formula for simple interest. The total amount repaid is based on the interest and the value of the original loan, called the principal. The formula for the total dollars needed to repay the loan, with interest, is found using the formula where is the amount (total principal plus interest) required to repay the loan. is the amount borrowed, the principal. is the annual interest rate, quoted as a percent, but used as a decimal in the formula. is the time, in years, taken to repay the loan (six months would be year). Suppose you get a loan of at an annual interest rate of . (a) Use the given information to write the formula for the total amount to be repaid in years.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Lenders such as banks, credit unions, and mortgage companies make loans. The person receiving the loan usually pays the loan off in small payments over a long period of time. The lender earns money by charging interest, which is based on a percentage of the amount that is borrowed. There are different types of interest. Car loans are usually calculated using the formula for simple interest. The total amount repaid is based on the interest and the value of the original loan, called the principal. The formula for the total dollars needed to repay the loan, with interest, is found using the formula
where
- is the amount (total principal plus interest) required to repay the loan.
- is the amount borrowed, the principal.
- is the annual interest rate, quoted as a percent, but used as a decimal in the formula.
- is the time, in years, taken to repay the loan (six months would be year).
Suppose you get a loan of at an annual interest rate of .
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