1400(1+.072/12)^22 = 1596.92
P(1+.031/12)^(12*2) = 4700
P = 4417.80
My friend let me borrow an assignment to study and for these 2 questions they didn't show their work, but got them correct. I was wondering if you could help me figure out how they got it? Thanks
A person borrowed $1400 at 7.2% compounded monthly. He decided to pay off the loan with a single payment after 22 months. What is the total amount that will be paid back?
- They put $1596.92 (no work shown)
A person wants to buy a rare coin because she believes the value will increase. She plans to buy the coin at 3.1% compounded monthly. She plans to make a single payment of $4700 at the end of 2 years. What is the greatest amount of money that she can borrow?
- They put $4417.80
2 answers
Thanks Steve
1 answer