How much can you borrow

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Que-1

You've located an investment that pays 9.5 percent per year. That rate sounds good to you, so you invest $1200. How much will you have in three years? How much will you have in seven years? At the end of seven years, how much interest will you have earned? How much of that interest results from compounding?

Que-2

After carefully going over your budget, you have determined you can afford to pay $700 per month toward a new sports car. You call up your local bank and find out that the going rate is 1.5 percent per month for 60 months. How much can you borrow?

Reference no: EM132622615

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