The effective annual interest rate calculations yield:
i = (1 + 0.064/12)^12 - 1 = 0.066
For year 1: the interest amounts to $613.80 (calculating $9300 multiplied by 0.066)
For year 2: the interest totals $654.31 (adding year 1’s interest to $9300 and multiplying by 0.066)
For year 3: the interest is $656.98 (following the same process as year 2)
For year 4: the interest is $657.16
The cumulative interest totals: $2582.25
The present value of this sum is:
P = 2582.23 / (1 + 0.066)^4 = $1999.72
Thus, the final answer is $1999.72.
It can be deduced that because line JL serves as a diameter for a circle, lines JK and KL function as the tangents of that circle. A tangent is defined as "a line that touches a curve at a singular point without intersecting it." Thus, both lines contact the perimeter of circle M, confirming they are tangents.
