Compound interest
1) a. With an annual interest rate of 12 % tell , what is the amount to pay in 1 year if the principal is $1,000.00 and is computed monthly ?
b. What is the amount to pay in 10 years if the annual interest rate is 24% and is computed annually ?
2) The credit card of a consumer pay an annual rate of 26% that is computed daily for advances or purchases . If this consumer bought a television for $999.00 and he took 1 year in pay the bill , tell What is the total payment to pay off his card ?
3) If a creditor has the choice to pay a debt with interest of $,3000.00 in 4 years with an interest rate of 8% computed annually or with an interest rate of 7.8% computed semiannual , which one you would choose that pays less ?
We use this formula to do it :
S = P (1+ r) n
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