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Jeanine took out a $9,000 loan to buy a jet ski. If the annual intere

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Math Expert
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Joined: 02 Sep 2009
Posts: 61243
Jeanine took out a $9,000 loan to buy a jet ski. If the annual intere  [#permalink]

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New post 26 Apr 2017, 07:21
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

95% (01:09) correct 5% (03:17) wrong based on 29 sessions

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Jeanine took out a $9,000 loan to buy a jet ski. If the annual interest rate of the loan was 16% compounded quarterly and the loan term was 1 year then which of the following shows the total cost of the jet ski?

A. 9000(0.12)^4
B. 9000(1.12)^4
C. 9000(1.04)^4
D. 9000(1.04)^3
E. 9000(0.04)^12

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Re: Jeanine took out a $9,000 loan to buy a jet ski. If the annual intere  [#permalink]

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New post 26 Apr 2017, 10:00
A = P (1+r/n)^nt
= 9000(1+0.16/4)^(4*1)
= 9000(1+0.04)^4
= 9000(1.04)^4

Answer is C. 9000(1.04)^4
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Re: Jeanine took out a $9,000 loan to buy a jet ski. If the annual intere   [#permalink] 26 Apr 2017, 10:00
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Jeanine took out a $9,000 loan to buy a jet ski. If the annual intere

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