Driley50
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Jessica's bank is offering her a loan with a stated rate of 4.90% interest. If the interest is compounded every two months, what will Jessica really pay for interest?
A) 4.90%
B) 5.00% THIS ONE
C) 5.01%
D) 4.96%
Must SHOW work for points

Respuesta :

cGillette21

b on edge b on edge b on edge

ajeigbeibraheem

Jessica will pay 5.00% if the interest rate is compounded every two months.

What is Interest Rate?

The interest rate is a proportion of the interest on the lent amount that a lender charges a borrower.

If Jessica's bank is offering her a loan with an interest rate of 4.90% interest.

Then, in a month, she will be charged;

  • = 4.90/100
  • = 0.049 on the amount borrowed

In two months, she will be charged:

  • = 0.049 × 2
  • = 0.098

The total amount that Jessica pays after two months is:

  • = (4.90 + 0.098)
  • = 4.998%
  • ≅ 5.00%

Learn more about interest rates here:

https://brainly.com/question/25793394

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