You take out a car loan for $7,300 at an interest rate of 4.2% for a duration of 5 years
compounded quarterly. What is the total amount that you will pay back to the bank?

Respuesta :

[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$7300\\ r=rate\to 4.2\%\to \frac{4.2}{100}\dotfill &0.042\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &5 \end{cases} \\\\\\ A=7300\left(1+\frac{0.042}{4}\right)^{4\cdot 5}\implies A=7300(1.0105)^{20}\implies A\approx 8996[/tex]

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