Unformatted text preview: 1600.00x.06 = 96 1600.00+96=1696.00 1696.00x.06 = 101.76 1696.00+101.76=1797.76 1797.76x.06 = 107.87 1797.76+107.76=1905.63 1905.63x.06 = 114.34 1905.63+114.34=2019.97 2019.97x.06 = 121.20 2019.97+121.20=2141.14 Total Interest for 5 years = $541.17 Should Steve count the interest at the end of the fifth year, he would have an additional $128.27 thus making his total $2,269.61. His interest would total $669.61. I would NOT lend to Barry. Steven will only gain $400.00 if he loans to Barry, with the assumption that Barry will pay him back and pay the interest promised. If Steven puts his money in the bank, he will make an additional $269.61 guaranteed payable by the bank....
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This note was uploaded on 06/10/2010 for the course BU 100 BU100 taught by Professor Prof during the Spring '09 term at Kaplan University.
- Spring '09