Jack lends $3,000 today to his friend at an interest rate of 10% per year, and follows it up with 3 more loans at the end of each year for three years. Each loan is $2,000 higher than the previous one. How much money should he receive from his friend at the end of three years?
Answers
Given : Jack lends $3,000 today to his friend at an interest rate of 10% per year, and follows it up with 3 more loans at the end of each year for three years. Each loan is $2,000 higher than the previous one
To find : How much money should he receive from his friend at the end of three years?
Solution:
Amount lended
= $ 3000 in Starting
5000 , 7000 & 9000 lended for next 3 years
Amount Lend = 3000 + 5000 + 7000 + 9000
= 24000$
Interest earned on $ 3000 for 3 years at 10 %
= 3000 * 10 * 3 /100
= 900 $
Interest earned on $ 5000 for 2 years at 10 %
= 5000 * 10 * 2 /100
= 1000 $
Interest earned on $ 7000 for 1 years at 10 %
= 7000 * 10 * 1 /100
= 700 $
Interest earned = 900 + 1000 + 700 = 2600 $
Total amount to be received = Amount lend + Interest earned
= 24000 + 2600
= 26600 $
Jack should receive 26600 $ at the end of three years
Learn More:
find the amount and compound interest on rs 750 lent at compound ...
https://brainly.in/question/5603012
The simple interest on a sum for 5 years is 2/5 of the sum. The rate ...
https://brainly.in/question/7305838
Answer: 26 743
Using compounding interest formula
End of 1st year
3000 (1+10/100)^3 = 3993
End of 2nd year
5000 (1+10/100)^2 = 6050
End of 3rd year
7000 (1+10/100)^1 = 7700
End of 4th Year
9000 (1+10/100)^0 = 9000
Add all up
3993 + 6050 + 7700 +9000 = 26743
the other answer providing here used simple interest which is completely wrong