Description
If $5000 is borrowed at a rate of 4.75% interest per year, compounded quarterly, find the amount due at the end of the given number of years. (Round your answers to the nearest cent.)
(a) 5 years
$
(b) 7 years
$
(c) 9 years
$
(b) 7 years
$
(c) 9 years
$
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Explanation & Answer
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For 5 years
A= 5000 * (1+0.475/4) ^ 20
= $ 6331.51
For 7 years
A= 5000 * (1+0.475/4) ^ 28
= $ 6958.61
For 9 years
A= 5000 * (1+0.475/4) ^ 36
= $7647.81
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