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21 January, 01:09

A college student takes out a $7500 loan from a bank. What will the balance of the loan be after one year (assuming the student has not made any payments yet)

a. if bank charges 3.8% interest each year?

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  1. 21 January, 01:12
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    The balance will be given by the equation

    loan amount times 1.038 = 7500 x 1.038 = $7,785
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