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 - Page 512: 13



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: $A=\$9000(1+6.5\%\cdot \frac{8}{12}) \\A=\$9000(1+0.065\cdot \frac{2}{3}) \\A=\$9000(1+0.04\overline{3}) \\A=\$9000(1.04\overline{3}) \\A=\$9,387.97$
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