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Popular Word Problems >

If 4000 is borrowed at a rate of 5.75% interest per year, compounded quarterly, find the amount due at the end of 3 years

Solução

I f 4000 i s b orro w e d a t a r a t e o f 5.75% in t eres t p er ye a r, co m p o u n d e d q u a r t er l y, f in d t h e am o u n t d u e a t t h e e n d o f 3 ye a rs

Solução

Amount : 4747.25

Passos da solução

Translate the problem into an equation:

A = 4000 (1 + \frac{0.0575}{4})^{4 \cdot 3}

4000 (1 + \frac{0.0575}{4})^{4 \cdot 3} = 4747.25365 \dots

Round to the nearest hundredth:

4747.25

Amount : 4747.25

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