# Loan and Interest questions

label Mathematics
account_circle Unassigned
schedule 1 Day
account_balance_wallet \$5

a. Ingrid took a \$20,000 loan for a photo business at 18% simple interest, which resulted in a future value of \$22,500. How many days was the loan held? Assume a year is 365.25 days.
b. Ingrid also needs \$5,000 to purchase camera equipment. She invests \$4,000 of her own cash into an account paying 5% interest compounded annually. How many years will be required to earn the \$1,000 in interest that she needs?

May 21st, 2015

p=20,000

r=18

t=x

A=22,500

I=PRT/100

MAKE T THE SUBJECT

T=100(A-P)/PR

T=100(22500-20,000)/18*20,000

T=250000/360000

T=0.694 *365.25

253.48 DAYS

253.5 dAYS

The formula for annual compound interest is A = P (1 + r/n) ^ nt:

Where:

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for

May 21st, 2015

Thank you very much for answering part a. of the question. Any ideas on part b.?

May 21st, 2015

I have provided the formular due to time if you follow the formular of compound interest you will arrive at the answer

May 21st, 2015

...
May 21st, 2015
...
May 21st, 2015
Nov 22nd, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer