Your truck loan is $48,000 $48,000 with an apr of 6% 6% compounded annually for 7 7 years. the compound interest formula for this loan is a=$48,000(1.06 ) 7 . a=$48,000(1.06)7. if this loan was changed to be compounded monthly, what would the new annual percentage rate need to be for you to spend the same amount of money? apr=8.8% apr=5.8% apr=6.2% apr=5.6%

Apr=6.2%

Step-by-step explanation:

∵ Amount formula in compound interest,

Where,

P = initial value,

r = rate per period,

t = number of periods,

Here, the given expression that represents the amount of loan after 7 years,

By comparing,

P = $ 4800, r = 0.06, t = 7 years,

If annual rate is 0.06, then, the rate per month = 0.06/12 = 0.005

Time = 7 × 12 = 84 months,

Hence, the amount would be,

Let it is equivalent to the amount obtained in annual compound rate r for 7 years,

Taking log both sides,

By graphing calculator,

r = 0.06168 ≈ 0.062 = 6.2 %

b

step-by-step explanation: