Concept explainers
Finance The formula that approximates the annual interest rate
where
(a) Approximate the annual interest rate for a five-year car loan of
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College Algebra
- In the formula I=prt for simple interest, P stands for __________, r for _________, and t for__________.arrow_forwardLondon owes $7, 000 on her credit card. The bank charges an annual interest rate of 16.8%, compounded monthly. If London wants to pay off her credit card using equal monthly payments over the next 18 months, what would the monthly payment be, to the nearest dollar? Pr M 1- (1+r)-" M = the monthly payment P = the amount owed r = the interest rate per month n = the number of paymentsarrow_forwardHakim has $60 in a savings account that earns 5% annually. The interest is not compounded. How much interest will he earn in 1 year? Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.arrow_forward
- A hospital purchases an ultrasound machine for $70,000 original cost. The hospital expects the useful life of the machine to be 15 years, at which time its value will have depreciated to $6,000 salvage value. The hospital uses the declining balances method for depreciation, the annual depreciation rate r is given by the formula r = 1 –I In the formula above, n, is the useful life of the item (in years), S is the salvage value (in dollars), and C is the original cost (in dollars). What annual depreciation rate, r, did the hospital use? Round to the nearest hundredth. 96 Blank 1:arrow_forwardLogan has $80 in a savings account that earns 10% interest per year. The interest is not compounded. How much interest will he earn in 1 year? Use the formula i = prt, where i is the interest earned, p is the principal %3D (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.arrow_forwardA college student receives an interestfreeloan of $8250 from a relative. The student will repay$125 per month until the loan is paid off. Express the amount P (in dollars) remaining to be paid in terms of time t (in months).arrow_forward
- Suppose that you borrow $12,000 for five years at 8% toward the purchase of a car. Use PMT= interest for the loan. C The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) [-(+3)¯] to find the monthly payments and the totalarrow_forwardChloe has $90,000 in a savings account that earns 9% annually. The interest is not compounded. How much interest will she earn in 4 months? Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.arrow_forward
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