Hi! this is Gregory and I some help with my Math Assignment. Thanks
Here is what I have so far, please let me know if I am on the right track.
4. Anna Cavanaugh loaned her friend Jason $1,000 for 6 months at 6% simple interest. What is the future value of the loan and how much finance charge will Jason pay?
=$1000 x .06 x 6/12
$1000 + $30= $1030(FV of the Loan)
5. Acton can choose from two loan offers: $12,000 at 8% simple interest for 9 months; or a $12,000 9-month discounted loan at 7% discount. Based on the actual interest paid and the true rate on the discounted loan, which of the two loan offers will Acton choose? Explain your answer.
First offer = $12,000 x .08 x 9/12= $720
Second Offer= $12,000 x .07 x 9/12=$630
$12,000 - $630 = $11,370
Now, how do I explain this answer?