Question

Bill takes a loan of $9,000.00 at a 8% simple interest rate for 6 years.

a. How much interest will he pay after 2 years?

b. How much interest will he pay in total for the loan?

A. $720.00; $3,600.00
B. $1,408.00; $4,224.00
C. $36,000.00; $12,000.00
D. $1,440.00; $4,320.00

Answer 1

What's the formula for Simple Interest..@valerieg

Answer 2

$2,550 at 3% compound interest for 18 months what is the balance?

Answer 3

Have you done the first question? @valerieg

Answer 4

yes, the answer id D I've figured that out on my own

Answer 5

That's very nice..:)
Well now let's see...do you know the formula for Compound Interest?
@valerieg
Even if you don't know the formula..can you do it with the knowledge of Simple Interest? One more question. is the Compound Interest yearly or half yearly?

Answer 6

hmmmmmm, 18 months a yeah and a half

Answer 7

a year and a half

Answer 8

yep..:)
Well..is the Comp. Int. calculated yearly or half-yearly?

Answer 9

...or monthly, or what?