Question

I’ll buy a black 2011 dodge ram 25,000 miles. I wanted this car because I just got my license. I always wanted that kind of car. The car cost $11,995. The bank I chose was Navy Federal Credit Union. My type of account was a car loan. The interest rate is 3.1%. The interest is compounded annually.
Calculate the amount of your compound interest investment after 10 years. Remember that you are starting with $7,500. Calculate the amount of your simple interest investment after 10 years. Remember to use the same rate & compounding as in #1. Create a graph that shows the growth of both options

Answer 1

So let me get this straight...you are borrowing $7500 and making no payments for 10 years and you want to know the amount you will owe if you borrow at simple interest or at interest that is compounded annually?

Answer 2

yeah .

Answer 3

Simple interest :
Interest = principal(rate)(time)=7500(.031)(10)
Total amount = 7500 + interest

Answer 4

Calculate that

Answer 5

2325
9825

Answer 6

I see my last post didn't post.
A= 7500(1+.031/1)^10=10177.66

Answer 7

Sorry about that.