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Crank
2 years ago
5

A shipping company borrows $70 million at 5% p.a. compound interest to build a new cruise ship. If it repays the debt after 3 ye

ars, how much interest will the company pay?
Mathematics
1 answer:
dem82 [27]2 years ago
5 0

Answer:

about 11.03 million

Step-by-step explanation:

Use the equation I = P(1+r/100)^n - P (I is the compound interest, P is the principle, r is the rate percent, and n is the number of years):

Substitute the values given:

I = 70,000,000(1 + 5/100)^3 - 70,000,000

Use a calculator to solve and you will get ~11.03 million.

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259.27

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Elden [556K]

Using the given formula T = LS

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1 year ago
Which of the following are exterior angles , check all that apply?
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2 years ago
Mai bought eleven 12-ounce bags of
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8.25 pounds

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5 0
1 year ago
What is the finance charge on $13,300 financed at 7.9 percent for 4 years if the monthly payment per $100 is $2.44?
luda_lava [24]

If you borrowed $100, then your monthly payment is $2.44

If you borrowed $200, then your monthly payment is 2*2.44 = 4.88

etc etc

We can set up a proportion

2.44/100 = x/13300

to figure out the monthly payment x. Cross multiply and solve for x

2.44*13300 = 100*x

100x = 2.44*13300

100x = 32452

x = 32452/100

x = 324.52

So the monthly payment is $324.52

An alternative way to get this monthly payment is to apply 2.44% to 13300, which is another way to view the phrase  "monthly payment per $100 is 2.44"

------------------

There are 48 months in 4 years (start with 12 mon = 1 yr, then multiply both sides by 4) so we multiply 48 by the monthly payment to get the result 48*324.52 = 15,576.96. This is the total amount you have to pay back which is the principal plus interest.

Subtract off the principal (amount borrowed) to find the interest or finance charge: 15,576.96 - 13,300 = 2,276.96

Answer: Choice B

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2 years ago
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