Respuesta :
Answer:
Gil is not correct.
Step-by-step explanation:
We have been given that Gil borrows $8,000 for college expenses. He will pay a total of $10,280 after 6 years. Gil says the interest rate is at least 5%.
We will use simple interest formula to check whether Gil is right or not.
[tex]A=P*(1+r*t)[/tex], where
A= Final amount after t years.
P= Principal amount.
r= Interest rate in decimal form.
Let us substitute our given values in above formula to find the interest rate.
[tex]10280=8000*(1+r*6)[/tex]
[tex]10280=8000+48000*r[/tex]
[tex]2280=48000*r[/tex]
[tex]r=\frac{2280}{48000}[/tex]
[tex]r=0.0475[/tex]
Since r is in decimal form, so let us convert interest rate in percent by multiplying by 100.
[tex]0.0475*100=4.75[/tex]
Therefore, the original interest rate is 4.75% which is less than 5%, so Gil is not correct.
Answer:
The answer is gill is incorrect he will pay 2280 interest, which corresponds to an interest rate of 4.75
Step-by-step explanation:
