Carcuratos 11.a credit card charges an annual rate of 18% compounded monthly. this month's bill is rs. 35, suppose that you keep paying rs. 5000 each month. how long will it take to pay off the bill? what is the total interest paid during that period? 111over 10 years a bond costing rs. 3000 increases in value to rs. 5372.54. find the effective annual rate.

FIRST QUESTION

It will pay the bill after 7.45 = rounding 8 months, being the last payment less than 5,000

The total interest for the period will be 2,263.04

SECOND QUESTION The rate will be 6%

Step-by-step explanation:

for the first part, we should calculate the time it takes to an ordinary annuity of 5,000 to have a present value of 35,000 at discount rate of 18%

C5,000

timen

rate0.015

PV$35,000.0000

We work out the formula:

We solve the right side of th formula

and then apply logarithmics properties:

-n = -7.450765527

n = 7.45

It will pay the bill after 8 months.

Total Interest: we will build the loan schedule:

         Bill          Interest    Cuota&Amortization

1      35000        525&      5000          4475

2     30525        457.88    5000         4542.12

3     25982.88  389.74     5000        4610.26

4     21372.62   320.59     5000         4679.41

5     16693.21   250.4       5000          4749.6

6     11943.61    179.15       5000          4820.85

7      7122.76    106.84     5000           4893.16

8       2229.6    33.44      2263.04       2229.6

Total              2263.04   37263.04       35000

The total interest for the period will be 2,263.04

Second question we will solve for the rate at which a capital of 3,000 returns 5,372.54 after 10 years

Principal30,00.00

Amount = 5,372.54

time10.00

rate?

r = 0.059999939 = 0.06 = 6%

=====================================

explanation

the graph has a slope of 1/3 because each time you move up 1, you go to the right 3. so, slope = rise/run = 1/3. we can cross choice a off the list since we want a slope of 3, rather than 1/3.

the first table shown has a slope of -3. this is because the rise is -6 and the run is 2, so slope = rise/run = -6/2 = -3. note how x increases by 2 each time (run) and y drops by 6 each time (rise). choice b can be eliminated.

the second table has a slope of 3. each time x goes up by 1, the y values increase by 3. slope = rise/run = 3/1 = 3. alternatively you can use the slope formula to prove that the slope is 3 here. use any two rows of values to generate the two points. choice c is one of the answers

the third table also has a slope of 3. let's use the slope formula to prove as such. i'm going to use the first two rows of the table. so i'll use the two points (2,1) and (5,10)

m = slope

m = (y2-y1)/(x2-x1)

m = (10-1)/(5-2)

m = 9/3

m = 3 so we get a slope of 3

choice d is the other answer