Question: I could use some help with assisting my son with his simple and compound interest middle school math homework. Any guidance is appreciated! Ethan has
I could use some help with assisting my son with his simple and compound interest middle school math homework. Any guidance is appreciated!
- Ethan has saved $1800, however the guitar he wants costs double that (so, $3600).If Ethan invests his $1800 dollars for 10 years at a compounded interest rate of 6%, how much money will he have after 10 years?
- After saving for 10 years, does Ethan have enough to buy that guitar?
- You take out a $30,000 loan at 2.9% interest compounded annually for 10 years.If you do not make any payments for 10 years, how much will you owe at the end?
- You take out a loan for $30,000 for 10 years at 3.8% simple interest.What is the total amount you will pay?(Remember you have to add the principal and the interest).
- You take out a loan for $30,000 for 7 years at 5.1% simple interest.What is the total you will pay?
- You take out a loan for $30,000 for 8 years at 3.9% compound interest for 8 years.If you do not make any payments until the end of 8 years, how much will you owe?
- Look at your answers for Questions 3, 4, 5, and 6. Which interest rate and time period will result in the lowest total loan repayment for a $30,000 loan earning interest?
a. Question 3: 2.9% compound interest for 10 years
b. Question 4: 3.8% simple interest for 10 years
c. Question 5: 5.1% simple interest for 7 years
d. Question 6: 3.9% compound interest for 8 years
8. Marisa invested $3,000 for 8 years at 4.5% simple interest. How much interest will Marisa earn?
9.Miguel invested $3,000 for 8 years at 4.5% compounded annually. How much interest will Miguel earn?
10. How much more interest will Miguel earn than Marisa?
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