15000*(1+.10/4)^(4*10)-(15000*(1+.12/4)^(4*5))*(1+.06/4)^(4*5)
= $3787.41
serena wants to borrow $15000 and pay it back in 10 years. the bank gives her 2 options
1: borrow the money at 10% compounded quarterly for the full term
option 2: borrow the money at 12%compounded quarterly for 5 years and after 5 years that interest rate will be 6% compounded quarterly how much will serena save by choosing the second option?
1 answer