Question

Question attached

Answer 1

@hartnn helpppp

Answer 2

simple interest is: Prt im guessing the question says he waits 3 years to pay it off?

B1 = P + Pr
B2 = P + Pr + P(r+.03)
B3 = P + Pr + P(r+.03) + P(r+.03+.03)

or should we Prt the Balance at the begining of each new year?

B1 = P + Pr
B2 = B1 + B1(r+.03)
B3 = B2 + B2(r+.06)

Answer 3

it says he pays the downpayment and made the rest of the payment and 13% within 1 year :/

Answer 4

13% the first year, and an increase of 3% for each year following

he pays off his balance "by the third year"

Answer 5

hmmm so what would be the answer can u show me the working plz

Answer 6

im just wondering if the simple interest calculations are made using the initial balance of year1, or if they are calculated each year by the new balance

Answer 7

let P be the purchase amount

P-P(.1) is the initial balance due

if we consider that the interest due is calculated by the begining balance

B1 - B1(.13) is the amount due at the end of year 1
B1 - B1(.16) is the amount due at the end of year 2
B1 - B1(.19) is the amount due at the end of year 3

B1 - B1(.13) + B1 - B1(.16) + B1 - B1(.19) = 10500

B1(1 - .13 + 1 - .16 + 1 - .19) = 10500

but that would be a purchase of about 4,700

which is not a choice so that idea is most likely the wrong way to approach this

Answer 8

hmmm :/

Answer 9

B0 = P(1-.1)

B1 = B0(1.13)
B2 = B1(1.16)
B3 = B2(1.19)

10500 = P(.9)(1.13)(1.16)(1.19)

P = about 7480 which of course is not an option. maybe by the third year means end of second year? gives me an 8900 value .... so im prolly just not reading the information correctly

Answer 10

hmm no problem thanks for trying :)

Answer 11

@uri do u know how to solve this?