If $5000 is borrowed at a rate of 4.75% interest per year, compounded quarterly,

User Generated

kvbjrv

Mathematics

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

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Thank you for the opportunity to help you with your question!

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

Please let me know if you need any clarification. I'm always happy to answer your questions.


Anonymous
Goes above and beyond expectations!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags