A finance company offers a promotion on $9000 loans. The borrower does not have
ID: 2750767 • Letter: A
Question
A finance company offers a promotion on $9000 loans. The borrower does not have to make any payments for the first four years, however interest will continue to be charged to the loan at 29.7% compounded continuously. What amount will be due at the end of the four year period, assuming no payments are made? (Round your answer to the nearest cent.)
$
If the promotion is extended an additional two years, and no payments are made, what amount would be due? (Round your answer to the nearest cent.)
$
Explanation / Answer
Answer: A
A(4) =9000e0.297.4
=$29524.62
Answer: B A(6)=9000e0.297.6
=$53475.55