The amount owed at the end of 5 years. An amount of $3000 is loaned...
The amount owed at the end of 5 years.
An amount of is loaned at a rate of compounded quarterly.
Answer & Explanation
Skilled2021-09-08Added 120 answers
The compound interest formula,
Here A is the amount after t years,
P is the principal amount,
r is the annual interest rate and n is number of periods the interest compounding.
To find the amount owed at the end of 5 years, we will substitute in the above compound interest formula and solve for A. Since the interest rate is compounded quarterly, so we substitute . So, we get
Thus, the amount owed is approximately at the end of 5 years.
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