Mathematics, 13.03.2021 01:10 likevlad2014

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) and finds out that this loan will cost her $1800.
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1
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(1.095) 2t
A 1500(1.2) 2t
A ~ 1500(1.2) 1/2t
A ~ 1500(1.095) 1/2t

Answers: 3

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Jane needs a short-term loan to buy a new washing machine. She needs to borrow $1500 at 20% compoun...

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