Precalculus
Precalculus
17th Edition
ISBN: 9780077538286
Author: Julie Miller
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 3.2, Problem 50PE

Al needs to borrow $15,000 to buy a car. He can borrow the money at 6.7 % simple interest for 5 yr or he can borrow at 6.4 % interest compounded continuously for 5 yr.

a. How much total interest would A1 pay at 6.7 % simple interest?

b. How much total interest would A1 pay at 6.4 % interest compounded continuously?

c. Which option results is less total interest?

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