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1. Lina wants to remodel her kitchen. Her contractor has quoted her $2,500 for the project. Lina will take out a home improvement loan from her bank. The loan has a two percent monthly, simple interest rate. Her minimum payments are $250. How long will it take for her to pay off the loan. 2500= If Lina wants to pay the loan off-in six months, what should her payments be? Round to the nearest dollar.

1. Lina wants to remodel her kitchen. Her contractor has quoted her $2,500 for the project. Lina will take out a home improvement loan from her bank. The loan has a two percent monthly, simple interest rate. Her minimum payments are $250. How long will it take for her to pay off the loan. 2500= If Lina wants to pay the loan off-in six months, what should her payments be? Round to the nearest dollar.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Cost of Borrowing Directions: Using the information from the scenarios below, solve the equations. Use the following formulas and show your work. Total Accrued Amount = Principle(1 + Interest Rate * Time period) Interest = Principle * Interest Rate * Time Period 1. Lina wants to remodel her kitchen. Her contractor has quoted her $2,500 for the project. Lina will take out a home improvement loan from her bank. The loan has a two percent monthly, simple interest rate. Her minimum payments are $250. How long will it take for her to pay off the loan. 2500= If Lina wants to pay the loan off-in six months, what should her payments be? Round to the nearest dollar. 2. Ben is a college student who needs to spend $600 on books. His bank offers a loan for students purchasing books, which has a monthly simple interest rate c two percent which needs to be fully paid back in six months. How much would Ben pay in total for his books once he repaid the loan? Ben's other option is to buy the books using his credit card, which has an an simple interest rate of 15 percent and if he only paid the minimum on his car Would take fiye years to repay. How much would Ben pay in total for his boo STUEEL
Transcribed Image Text:Cost of Borrowing Directions: Using the information from the scenarios below, solve the equations. Use the following formulas and show your work. Total Accrued Amount = Principle(1 + Interest Rate * Time period) Interest = Principle * Interest Rate * Time Period 1. Lina wants to remodel her kitchen. Her contractor has quoted her $2,500 for the project. Lina will take out a home improvement loan from her bank. The loan has a two percent monthly, simple interest rate. Her minimum payments are $250. How long will it take for her to pay off the loan. 2500= If Lina wants to pay the loan off-in six months, what should her payments be? Round to the nearest dollar. 2. Ben is a college student who needs to spend $600 on books. His bank offers a loan for students purchasing books, which has a monthly simple interest rate c two percent which needs to be fully paid back in six months. How much would Ben pay in total for his books once he repaid the loan? Ben's other option is to buy the books using his credit card, which has an an simple interest rate of 15 percent and if he only paid the minimum on his car Would take fiye years to repay. How much would Ben pay in total for his boo STUEEL
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