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The compound interest formula is F=P(1+i)n where F is the total amount due, P is the initial cost or amount of money, i is the interest rate, and n is the number of periods interest is computed.
1. A student purchases a $1400 laptop computer for school. The deal does not require payment until 3 years later. If interest is computed monthly, how much does the student have to pay at the end of 3 years? The monthly interest rate is 1.7 percent.
2.If the cost of the laptop is the same, how much does the student owe if the interest rate is 20.4 percent computed annually?
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Furthermore, the hospital receives $120,000 in checks daily that take 4 days to be deposited and credited. What is the hospital's float?
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