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(a) How much simple interest would you pay? After 6 years, you would pay $ 8154 in simple interest. Part: 1/4 Part 2 of 4 (b) Suppose the bank splits the loan into six 1-year loans, so that the future value of the loan would be recalculated at the end of each one-year period, with interest charged on the new amount for the next year. Fill in the following table, which will show the future value of the loan at the end of each 1-year period. Round to the nearest dollar. End of Year Future Value, $ 1 3 4 5 6 X

(a) How much simple interest would you pay? After 6 years, you would pay $ 8154 in simple interest. Part: 1/4 Part 2 of 4 (b) Suppose the bank splits the loan into six 1-year loans, so that the future value of the loan would be recalculated at the end of each one-year period, with interest charged on the new amount for the next year. Fill in the following table, which will show the future value of the loan at the end of each 1-year period. Round to the nearest dollar. End of Year Future Value, $ 1 3 4 5 6 X

Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter13: Sequences And Series
Section13.FOM: Focus On Modeling: Modeling With Recursive Sequences
Problem 5P
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### Loan Interest Educational Exercise **Scenario:** Suppose you have borrowed $15,100 for school expenses at 9% simple interest for 6 years. #### Part 1 of 4 **Question (a):** How much simple interest would you pay? **Answer:** After 6 years, you would pay $8,154 in simple interest. #### Part 2 of 4 **Question (b):** Suppose the bank splits the loan into six 1-year loans so that the future value of the loan would be recalculated at the end of each one-year period, with interest charged on the new amount for the next year. Fill in the following table, which will show the future value of the loan at the end of each 1-year period. Round to the nearest dollar. **Table:** | **End of Year** | **1** | **2** | **3** | **4** | **5** | **6** | |-----------------|-------|-------|-------|-------|-------|-------| | **Future Value, $** | | | | | | | **Options:** - Skip Part - Recheck (button) - Try Again (button) - Save For Later (button) - Submit Assignment (button) **Additional Information:** - Weather: 68°F, Clear - Time and Date: 9:31 PM, 6/12/2023 --- **Note:** If you have any questions or need further explanations regarding this exercise, please refer to the terms of use and privacy center or contact customer support.
Transcribed Image Text:### Loan Interest Educational Exercise **Scenario:** Suppose you have borrowed $15,100 for school expenses at 9% simple interest for 6 years. #### Part 1 of 4 **Question (a):** How much simple interest would you pay? **Answer:** After 6 years, you would pay $8,154 in simple interest. #### Part 2 of 4 **Question (b):** Suppose the bank splits the loan into six 1-year loans so that the future value of the loan would be recalculated at the end of each one-year period, with interest charged on the new amount for the next year. Fill in the following table, which will show the future value of the loan at the end of each 1-year period. Round to the nearest dollar. **Table:** | **End of Year** | **1** | **2** | **3** | **4** | **5** | **6** | |-----------------|-------|-------|-------|-------|-------|-------| | **Future Value, $** | | | | | | | **Options:** - Skip Part - Recheck (button) - Try Again (button) - Save For Later (button) - Submit Assignment (button) **Additional Information:** - Weather: 68°F, Clear - Time and Date: 9:31 PM, 6/12/2023 --- **Note:** If you have any questions or need further explanations regarding this exercise, please refer to the terms of use and privacy center or contact customer support.
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