Answer:
the annual interest rate is 7.583%
Step-by-step explanation:
We are given
Summer has an offer to buy an item with a sticker price of $13,200
so, we have
P=13200
paying $460 a month for 36 months
so, we can find total amount
Let's assume
annual interest is r
total time =36 months
so, total number of years =3
Since, it is compounded monthly
so, n=12
now, we can use formula
now, we can plug values
now, we can solve solve for r
So, the annual interest rate is 7.583%
Answer:
<em>Mrs. Adams will earn $3,120 of interest at the end of year 8.</em>
Step-by-step explanation:
<u>Simple Interest</u>
In simple interest, the money earns interest at a fixed rate, assuming no new money is coming in or out of the account.
We can calculate the interests earned by an investment of value A in a period of time t, at an interest rate r with the formula:
Mrs. Adams deposited an amount of A=$12,000 into an account that earns an annual simple interest rate of r=3.25%. We must find the interest earned in t=8 years. The interest rate is converted to decimal as:
The interest is then calculated:
Mrs. Adams will earn $3,120 of interest at the end of year 8.