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If $4000 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.)

Respuesta :

Answer:

1. $4000(1 + 4.75/4)^20 = $5,065.21

2.  $4000(1 + 4.75/4)^28 = $5,566.88

3.  $4000(1 + 4.75/4)^36 = $6,118.25

Explanation:

Here is the full question :

f $4000 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.)

5 Years

7 Years

9 Years

We are to find the future value of the amount

The formula for calculating future value:

FV = P (1 + r/m)^ nm

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

M = number of compounding per year

1. $4000(1 + 4.75/4)^20 = $5,065.21

2.  $4000(1 + 4.75/4)^28 = $5,566.88

3.  $4000(1 + 4.75/4)^36 = $6,118.25

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