OpenStudy (anonymous):

Frank purchased a boat for $7,525. He made a down payment of $475. He applied for a six-year installment loan with an interest rate of 8.4% in the amount of $7,050. What is the total cost of the boat after six years?

5 years ago
hero (hero):

Hint: \[A = P(1 + \frac{r}{n})^{nt}\] A = Cost of Boat P = Initial Amount R = Interest Rate N = Number of times Compounded per year T = No of years compounded

5 years ago
hero (hero):

Did you figure out the Cost of the boat after six years?

5 years ago
OpenStudy (anonymous):

Working on it right now. Just had to find myself a pencil.

5 years ago
hero (hero):

Okay, if you don't mind, please post your answer afterwards.

5 years ago
OpenStudy (anonymous):

I'm sorry. I'm a tad bit lost. It's not compounded, I think?

5 years ago
hero (hero):

Are you working with simple interest?

5 years ago
OpenStudy (anonymous):

No, I already did that. I'm into the section with deferred payments and installment loans.

5 years ago
hero (hero):

And what is the name of this course?

5 years ago
OpenStudy (anonymous):

Advanced Algebra with Financial Applications. I'm into the spending section at the moment.

5 years ago
hero (hero):

I see. Okay, I will see if I can find an appropriate solution for this

5 years ago
OpenStudy (anonymous):

Thank you.

5 years ago
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