Mathematics, 06.11.2020 14:00 jurneii
Jane needs a short-term loan to buy a new washing machine. She needs to borrow $1500 at 20% compounded annually and plans to have it paid off in 1 year. Jane writes the formula 1500(1.2)t and finds out that this loan will cost her $1800.
Which equation shows how Jane can rewrite the formula to find the annual percentage rate that would cost her the same amount if it compounded semi-annually?
A≈1500(1.2)12t
A≈1500(1.2)2t
A≈1500(1.095)2t
A≈1500(1.095)12t
Answers: 2
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