Maribel bought new furniture for her house. The total price of the furniture is $5,200. Which of the following options should Maribel choose to pay the least amount of
interest?

A Pay an annual simple interest of 5% for 24 months
B Pay an annual simple interest of 8% for 18 months
C Pay an annual simple interest of 6% for 14 months
D Pay an annual simple interest of 10% for 9 months

Step-by-step explanation:

apter 5 – Finance – The first part of this review will explain the different interest and

investment equations you learned in section 5.1 through 5.4 of your textbook and go through

several examples. The second part of this review will give you various sample problems to work

on – you should know how to do all these sample problems for Exam II. The sample exam is

posted to the Math 113 webpage – please come to the Math Resource Center if you need help!

The sum of money you deposit into a savings account or borrow from a bank is called the

principal. The fee to borrow money is called interest. When you borrow money you pay back

the principal and interest to your lender. When you deposit money into a savings account or

other investment, the bank pays you back the principal and the interest earned. Interest is

calculated as a percent of the money borrowed, a percent of the principal. Depending on the type

of loan, interest can be calculated in a variety of ways.

Simple Interest Loans (Section 5.1) :

Simple Interest involves a single payment and the interest computed on the principal only. The

equation for simple interest is a linear function. If the problem refers to a simple interest rate,

then you know you need to use simple interest rate formulas.

Equation #1:

:

Pr

where

I = t

I = the amount of interest paid for borrowing the money

P= the principal or the amount of money you borrowed from the bank

r = is the simple interest rate – this is a per annum rate (i.e. yearly)

t = the amount of time the money is borrowed for – this needs to be in years if the problem gives

you t in months then you need to divide the number of months by 12 to convert t into years.

Equation #2:

A = (P+Prt)=P*(1+rt)

where:

A = the future value - the total amount the borrower owes at the end of the loan period – this is

Principal plus Interest.

I = the amount of interest paid for borrowing the money

P= the principal or the amount of money you borrowed from the bank

r = is the simple interest rate – this is a per annum rate (i.e. yearly)

t = the amount of time the money is borrowed for – this needs to be in years if the problem gives

you t in months then you need to divide the number of months by 12 to convert t into years.

Equation #3:

I = A – P

where:

A = the total amount you owe at the end of the loan period – this is Principal plus Interest.

I = the amount of interest paid for borrowing the money

easy math just plug in a and b

step-by-step explanation:

what is the answer?