Question
4700 is borrowed at a rate of 16% interest per year, compounded quarterly. Find the amount due at the end of 4 years
Answers
Henry
Pt = Po(r + 1)^n.
r = 16% / 4 = 4% = 0.04 = Quarterly int. rate.
n = 4 yrs * 4 comp / yr 16 comp.
Pt = 4700 (1.04)^16,
Pt = 4700 * 1.8730 = 8803.01 = Amt. due
after 4 yrs.
r = 16% / 4 = 4% = 0.04 = Quarterly int. rate.
n = 4 yrs * 4 comp / yr 16 comp.
Pt = 4700 (1.04)^16,
Pt = 4700 * 1.8730 = 8803.01 = Amt. due
after 4 yrs.