bethany needs to borrow $8000 . she can borrow the money at a 5.5% simple interest for 5 year or borrow at 3% with interest compounded continuously for 5 years.

A. how much total interest would she pay at 5.5% simple interest?

B. how much total interest at 3% compounded continuously ?

c. which option results in total less interest?

Question

bethany needs to borrow $8000 . she can borrow the money at a 5.5% simple interest for 5 year or borrow at 3% with interest compounded continuously for 5 years. 

A. how much total interest would she pay at 5.5% simple interest?

B. how much total interest at 3% compounded continuously ?

c. which option results in total less interest?

katie327 · Answer

I am not sure If I am doing this right.
For A. I got 440 total interest  
For B. I got 1200 total interest.

satellite73 · Answer

i have no idea how to do the first one
for the second, compute $$\huge 8,000\times e^{.15}$$

jim_thompson5910 · Answer

for part a, use the formula

i = P*r*t

i = simple interest earned
P = deposit amount
r = interest rate in decimal form
t = time in years

satellite73 · Answer

that will give you the total amount after three years
subtract 8,000 to get the amount that is interest

katie327 · Answer

I got A it was 2200

satellite73 · Answer

btw no one compounds interest continuously, that is something only found in nature

jim_thompson5910 · Answer

`I got A it was 2200`
correct