Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.) $11,000 at 4% for 10 years if the interest is compounded in the following ways. (a) annually $ (b) quarterly
Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.) $11,000 at 4% for 10 years if the interest is compounded in the following ways. (a) annually $ (b) quarterly
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Determine the amount due on the
$11,000 at 4% for 10 years if the interest is compounded in the following ways.
(a) annually
$
(b) quarterly
$
(b) quarterly
Expert Solution
Step 1 Analysis
We need to use compound interest formula to calculate the amount due
A=P(1+i)n
Where
A= amount
P=Principal
i= periodic interest rate
n=number of compounding
Step by step
Solved in 3 steps
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