Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.3 Simple Interest - Exercise Set 8.3: 14

Answer

$A=\$6,202.50$

Work Step by Step

RECALL: The formula for the future value $A$ is: $A=P(1+rt)$ where P = principal amount borrowed r = interest rate per year t = time in years Use the formula above to obtain: $A=\$6000(1+4.5\%\cdot \frac{9}{12}) \\A=\$6000(1+0.045\cdot \frac{3}{4}) \\A=\$6000(1+0.03375) \\A=\$6000(1.03375) \\A=\$6,202.50$
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