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Suppose you have borrowed $9800 for school expenses at 6% simple interest for 6 years.

Suppose you have borrowed $9800 for school expenses at 6% simple interest for 6 years.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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### Loan Interest Calculation and Future Value Analysis #### Context Suppose you have borrowed $9800 for school expenses at a 6% simple interest rate for 6 years. #### Part 1 of 4 **(a) How much simple interest would you pay?** After 6 years, you would pay \$3528 in simple interest. --- #### 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 | 1 | 2 | 3 | 4 | 5 | 6 | |-------------|------|------|------|------|------|------| | Future Value, $ | | | | | | | --- #### Visual Explanation: - **Table**: - The table consists of two rows: "End of Year" and "Future Value, $". - The "End of Year" row lists the years from 1 to 6. - The "Future Value, $" row is meant to be filled in with the calculated future value of the loan at the end of each respective year.
Transcribed Image Text:### Loan Interest Calculation and Future Value Analysis #### Context Suppose you have borrowed $9800 for school expenses at a 6% simple interest rate for 6 years. #### Part 1 of 4 **(a) How much simple interest would you pay?** After 6 years, you would pay \$3528 in simple interest. --- #### 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 | 1 | 2 | 3 | 4 | 5 | 6 | |-------------|------|------|------|------|------|------| | Future Value, $ | | | | | | | --- #### Visual Explanation: - **Table**: - The table consists of two rows: "End of Year" and "Future Value, $". - The "End of Year" row lists the years from 1 to 6. - The "Future Value, $" row is meant to be filled in with the calculated future value of the loan at the end of each respective year.
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