Basic College Mathematics (10th Edition)

Published by Pearson
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Chapter 6 - Percent - 6.8 Compound Interest - 6.8 Exercises - Page 455: 33

Answer

(a) The total amount that should b repaid is 128,402 dollars. (b) The amount of interest earned is 52,402 dollars.

Work Step by Step

Using the 6% column of the compound interest table, the compound amount for 9 years is found to be 1.6895. Multiply this amount times the principle to calculate the amount that will be repaid. $1.6895\times76,000=128,402$ dollars The interest is the difference between the amount to be repaid and the principle. $128,402-76,000=52,402$ dollars
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