1. Calculate the interest and total amount due at the end of each of five loans for both simple and compound interest. Record your answers in the tables, rounded to the nearest dollar. Be sure to show your work. Simple Interest: Part Rate Years Loan Amount Due Interest Paid A 5.0% 5 $10,000 B 5.0% 10 $10,000 C 10.0% 5 $10,000 D 10.0% 10 $10,000 Compound Interest: Part Rate Years Loan Amount Due Interest Paid A 5.0% 5 $10,000 B 5.0% 10 $10,000 C 10.0% 5 $10,000 D 10.0% 10 $10,000

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
Question

Engineering Econ HW2 Q1

1. Calculate the interest and total amount due at the end of each of five loans for both simple and
compound interest. Record your answers in the tables, rounded to the nearest dollar. Be sure to
show your work.
Simple Interest:
Part
Rate
Years
Loan
Amount Due
Interest Paid
A
5.0%
5
$10,000
B
5.0%
10
$10,000
C
10.0%
5
$10,000
D
10.0%
10
$10,000
Compound Interest:
Part
Rate
Years
Loan
Amount Due
Interest Paid
A
5.0%
5
$10,000
B
5.0%
10
$10,000
C
10.0%
5
$10,000
D
10.0%
10
$10,000
Transcribed Image Text:1. Calculate the interest and total amount due at the end of each of five loans for both simple and compound interest. Record your answers in the tables, rounded to the nearest dollar. Be sure to show your work. Simple Interest: Part Rate Years Loan Amount Due Interest Paid A 5.0% 5 $10,000 B 5.0% 10 $10,000 C 10.0% 5 $10,000 D 10.0% 10 $10,000 Compound Interest: Part Rate Years Loan Amount Due Interest Paid A 5.0% 5 $10,000 B 5.0% 10 $10,000 C 10.0% 5 $10,000 D 10.0% 10 $10,000
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