4/19/22, 8:08 PMIntroduction to College Mathematics - CHALLENGE 2: Loans, Interest, and InvestmentsUNIT 4 — CHALLENGE 2: Loans, Interest, and Investments2 — Compound InterestSolve interest and value real world word problems using compound interest.Tiffany borrows $8,000 to pay for college. The loan has a 7% interest rate that compounds monthly. She plans to pay off the loan in 15 years.How much will she pay in total?Score1/512345Well done! You have completed this Challenge.Exit the ChallengeQuestionTutorialA.)$15,002.31B.)$22,791.57C.)$19,283.29D.)$18,309.87B.)Correct.
Page 1 of 6To find the answer, use the formula for compound interest.First, convert the interest rate to a decimal.Place the numbers into the compound interest formula.Follow the order of operations (PEMDAS) to calculate the total, beginning with the parenthesis.Next, calculate the exponent.Solution.Report an issue with this questionReported. Thanks for your feedback.This question:Unit 4 TutorialsCompound InterestSophia
4/19/22, 8:08 PMIntroduction to College Mathematics - CHALLENGE 2: Loans, Interest, and InvestmentsPage 2 of 6Has a typo or misspellingHas the incorrect answerHas multiple correct answersOtherDetailed descriptionNote:For academic help with this question please contact the Sophia Learning Coaches via chat, email, or phone.ReportCancelPDF Versionwhat's coveredIn this lesson, we will continue to explore interest by looking at compound interest. You will continue strengthening your results driven skill as you solve problems involvingcompound interest. Specifically, we will discuss:1. Simple Interest vs. Compound Interest2. Calculating Compound Interest1. Simple Interest vs. Compound InterestAs we discussed in our last lesson, there are two different types of interest: simple interest and compound interest. Simple interest is, well, simple to figure out with a simpleformula of:formulaSimple InterestSimple interest assumes that the interest amount toward a loan or investment is not added back into the principal. Additionally, the time is calculated in years.