5 Read the following article. Use the quantitative information in below M the by RBB's estimates. Berlin Owes Mittenwalde, Small German Town, Trans On AS (Reporting by Sophie Duvernoy, editing by Paul Casciato) BERLIN, July 18 (Reuters) - The sleepy hamlet of Minnerwaldeinen outstanding debt that dates back to 1562. A certificate of debts could become one of the richest towns in the world i Berlin were archive, attests that Mittenwalde lent Berlin 400 guilders on May 28 152, repaid with six percent interest per year. guilders today, which is roughly equivalent to 112 million euros ($136.73 According to Radio Berlin Brandenburg (RBB), the debt would month 1200 Adjusting for compound interest and inflation, the total debt noves in the Town historian Vera Schmidt found the centuries-old debt slip in the are, it had been filed in 1963. Though the seal is missing from the document, Sc. told Reuters that she was certain the slip was still valid. "In 1893 there was a in which the document was examined and the writing was determined to be Schmidt and Mittenwalde's Mayor Uwe Pfeiffer have tried to ask Berlin for the money back. Such requests have been made every 50 years or so since 1820 Mittenwalde, a seat of power in the middle ages, which now has a population of always to no avail. Reclaiming the debt would bring significant riches to 8,800. Red brick fragments of medieval fortifications still dot the leafy town centre Germany's most prolific hymn writers. Gerhardt, who lived there briefly in the 17 The town's Romanesque church was once the provost seat for Paul Gerhardt, yo authentic," Schmidt said. century, is the only noted Mittenwalde resident to date. ceremonially handed them a historical guilder from 1539. The guilder was put in a Schmidt and Pfeiffer met with Berlin's finance senator Ulrich Nussbaum, who temporary display at the Mittenwalde museum. "This case shows that debts always catch up with you, no matter how old they are," Nussbaum told the Berliner Zeitung paper The debt-laden German capital would have difficulty meeting Mittenwalde's demands anyway. According to a report released by the senate finance administration in June 2012, Berlin is already close to 63 billion euros in the red Note: $1 = 0.8188 euros. vecurvey ( Using information in the first paragraph of the article, create a model for the value of the loan over time, using simple interest, in guilders. Use A for the value of the loan and t for the number the principal (or amount) of the loan, ris the annual interest rate in decimal form, and tis the Hint: The value of loan is the principal (or amount) of the loan plus any interest earned, or/=P+/. Also recall the simple interest formula is I = Prt, where I is the interest earned, PS of years since the loan begin. number of years. o Create a model for the value of the loan using compound interest, compounded annually.in guilders 1d Using these models, critique the accuracy of the quantitative information in the second paragraph of the article. 5 Read the following article. Use the quantitative information in below M the by RBB's estimates. Berlin Owes Mittenwalde, Small German Town, Trans On AS (Reporting by Sophie Duvernoy, editing by Paul Casciato) BERLIN, July 18 (Reuters) - The sleepy hamlet of Minnerwaldeinen outstanding debt that dates back to 1562. A certificate of debts could become one of the richest towns in the world i Berlin were archive, attests that Mittenwalde lent Berlin 400 guilders on May 28 152, repaid with six percent interest per year. guilders today, which is roughly equivalent to 112 million euros ($136.73 According to Radio Berlin Brandenburg (RBB), the debt would month 1200 Adjusting for compound interest and inflation, the total debt noves in the Town historian Vera Schmidt found the centuries-old debt slip in the are, it had been filed in 1963. Though the seal is missing from the document, Sc. told Reuters that she was certain the slip was still valid. "In 1893 there was a in which the document was examined and the writing was determined to be Schmidt and Mittenwalde's Mayor Uwe Pfeiffer have tried to ask Berlin for the money back. Such requests have been made every 50 years or so since 1820 Mittenwalde, a seat of power in the middle ages, which now has a population of always to no avail. Reclaiming the debt would bring significant riches to 8,800. Red brick fragments of medieval fortifications still dot the leafy town centre Germany's most prolific hymn writers. Gerhardt, who lived there briefly in the 17 The town's Romanesque church was once the provost seat for Paul Gerhardt, yo authentic," Schmidt said. century, is the only noted Mittenwalde resident to date. ceremonially handed them a historical guilder from 1539. The guilder was put in a Schmidt and Pfeiffer met with Berlin's finance senator Ulrich Nussbaum, who temporary display at the Mittenwalde museum. "This case shows that debts always catch up with you, no matter how old they are," Nussbaum told the Berliner Zeitung paper The debt-laden German capital would have difficulty meeting Mittenwalde's demands anyway. According to a report released by the senate finance administration in June 2012, Berlin is already close to 63 billion euros in the red Note: $1 = 0.8188 euros. vecurvey ( Using information in the first paragraph of the article, create a model for the value of the loan over time, using simple interest, in guilders. Use A for the value of the loan and t for the number the principal (or amount) of the loan, ris the annual interest rate in decimal form, and tis the Hint: The value of loan is the principal (or amount) of the loan plus any interest earned, or/=P+/. Also recall the simple interest formula is I = Prt, where I is the interest earned, PS of years since the loan begin. number of years. o Create a model for the value of the loan using compound interest, compounded annually.in guilders 1d Using these models, critique the accuracy of the quantitative information in the second paragraph of the article