Mathematics, 24.06.2019 20:30, nauticatyson9

Acollege student takes out a $7500 loan from a bank. what will the balance of the loan be after one year(assuming the student has not made any payments yet) a. if bank charges 3.8% interest each year ? b. if the bank charger 5.3% interest each year ?

Answers: 1

Show answers

Answers

You can calculate the interest amount from the given rate of interest and then add it to initial loan amount to get the final payable amount.

The balance of the loan after one year for given interest rates will be

a) $7785

b) $7897.5

How to calculate the interest amount with a given rate and time?

There are mainly two types of interest. One which works only on principal(or say initial) amount, and one which works on amount + interest to be paid until now.

For 1 year case, if interest is applied annually, both interests are same since there is no interest before first year.

For 1 year, interest with R% rate for principal amount P is just R% of P which is $\dfrac{P}{100} \times R$

Evaluating all cases of interest rates applied on the principal amount of loan:

a) R = 3.8% each year

Since P = $7500, thus, interest for 1 year is 3.8% of $7500 which is

$I = \dfrac{7500}{100} \times 3.8 = 75 \times 3.8 = \$285$

Thus, total payable amount = Principal amount + interest

Total amount = $7500 + $285 = $7785

b) R = 5.3% each year

Since P = $7500, thus, interest for 1 year is 5.3% of $7500 which is

$I = \dfrac{7500}{100} \times 5.3 = 75 \times 5.3 = \$397.5$

Thus, total payable amount = Principal amount + interest

Total amount = $7500 + $397.5 = $7897.5

Thus,

The balance of the loan after one year for given interest rates will be

a) $7785

b) $7897.5

Learn more about simple interest here:

link

answered: ttaysia

(a) $7785

(b) $7897.5

Step-by-step explanation:

Given:

Loan = $7500

We need to find the balance of the loan be after one year(assuming the student has not made any payments yet).

The formula for amount or loan is

A=P(1+r)^t .... (1)

where, P is principle, r is rate of interest and t is time in years.

(a) If bank charges 3.8% interest each year.

r = 3.8% = 0.038

Substitute P=7500, r=0.038 and t=1 in equation (1).

A=7500(1+0.038)^1

A=7500(1.038)

A=7785

Therefore, the balance of the loan be after one year is $7785.

(b) If the bank charger 5.3% interest each year.

r = 5.3% = 0.053

Substitute P=7500, r=0.053 and t=1 in equation (1).

A=7500(1+0.053)^1

A=7500(1.053)

A=7897.5

Therefore, the balance of the loan be after one year is $7897.5.

answered: Guest

i wish i could u

step-by-step explanation:

i wish i could u

Which is an x-intercept of the continuous function in the table

answered: Guest

i think the amount would be $140.62

Other questions on the subject: Mathematics

Mathematics, 20.06.2019 18:04, Satoetoe24

Which of the following questions is a statistical question? (2 points) how many professional sport leagues are there? where do the professional sport leagues play? how many hours of professional training took place over the weekend? how many hours do you spend each week training for a sports league?

Answers: 1

continue

Mathematics, 21.06.2019 16:00, diamondd4

What is the value of x in the diagram below?

Answers: 2

continue

Mathematics, 21.06.2019 17:00, cat216

Omar is going on a road trip! the car rental company offers him two types of cars. each car has a fixed price, but he also needs to consider the cost of fuel. the first car costs $90 to rent, and because of its fuel consumption rate, there's an additional cost of s0.50 per kilometer driven.

Answers: 2

continue

Mathematics, 21.06.2019 20:10, Jasten

21 type the correct answer in the box. use numerals instead of words. if necessary, use / for the fraction bar. the solution set of n2 - 14n = -45 is { (separate the solutions with a comma)

Answers: 3

continue

Do you know the correct answer?

Acollege student takes out a $7500 loan from a bank. what will the balance of the loan be after one...