Unformatted text preview: ee $5,000 loans is shown in the following table.
Loan Principal Annual payment Term (years) A $5,000 $1,352.81 5 B 5,000 1,543.21 4 C 5,000 2,010.45 3 a. Determine the interest rate associated with each of the loans.
b. Which loan should Mr. Flemming take?
LG6 4–53 Number of years—Single amounts For each of the following cases, determine
the number of years it will take for the initial deposit to grow to equal the future
amount at the given interest rate.
A Initial deposit
$ Future amount Interest rate
7% 300 $ 1,000 B 12,000 15,000 5 C 9,000 20,000 10 D 100 500 9 E 7,500 30,000 15 LG6 4–54 Time to accumulate a given sum Manuel Rios wishes to determine how long it
will take an initial deposit of $10,000 to double.
a. If Manuel earns 10% annual interest on the deposit, how long will it take for
him to double his money?
b. How long will it take if he earns only 7% annual interest?
c. How long will it take if he can earn 12% annual interest?
d. Reviewing your findings in parts a, b, and c, indicate what relationship exi...
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