Angel wants to take out a loan of $9,000 with interest that compounds monthly. Use the formula A = P(1 + nt to find

which of these loan terms will have the lowest total cost.

A) 2 years at 7% interest

B) 3 years at 6% interest

C) 4 years at 5% interest

D) 5 years at 4% interest

A) 2 years at 7% interest

Step-by-step explanation:

You have to use the formula to calculate the amount after a certain period of time with compound interest and that formula would be (The formula in the statement appears to be incomplete as it doesn't have the interest rate):

A=P(1+r/n)^nt, where

A= amount after time has passed

P= Principal

r= Rate expressed as a decimal

n= Number of times in a year that interest is compounded

t= Time in years

A) 2 years at 7% interest

A=$9,000*(1+0.07/12)^12*2

A=$9,000*1.1498

A=$10,348.2

B) 3 years at 6% interest

A=$9,000*(1+0.06/12)^12*3

A=$9,000*1.19668

A=$10,770.12

C) 4 years at 5% interest

A=$9,000*(1+0.05/12)^12*4

A=$9,000*1.22

A= $10,980

D) 5 years at 4% interest

A=$9,000*(1+0.04/12)^12*5

A=$9,000*1.2209

A=10,988.96

According to this, the loan term that will have the lowest cost is: A) 2 years at 7% interest because it is the one in which Angel would pay less.

i believe the correct answer is b.

answer: solve 5\cdot 2^x=2405⋅2  

x

=2405, dot, 2, start superscript, x, end superscript, equals, 240.

solution

to solve for xxx, we must first isolate the exponential part. to do this, divide both sides by 555 as shown below. we do not multiply the 555 and the 222 as this goes against the order of operations!

\begin{aligned} 5\cdot 2^x& =240 2^x& =48 \\ \end{aligned}  

5⋅2  

x

2  

x

​    

=240

=48

​

step-by-step explanation: