Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Ivan took out a loan for 6700 that charges an annual rate of 9.5% compounded quarterly. Answer each part.

Ivan Took Out A Loan For 6700 That Charges An Annual Rate Of 95 Compounded Quarterly Answer Each Part class=

Sagot :

We will have the following:

a) The amount after one year will be:

[tex]\begin{gathered} A=6700(1+\frac{0.095}{4})^{4\ast1}\Rightarrow A=7359.53647... \\ \\ \Rightarrow A\approx7359.54 \end{gathered}[/tex]

So, the amount after 1 year will be approximately $7359.54.

b) The effective annual interest rate will be:

[tex]eair=(1+\frac{0.095}{4})^4-1\Rightarrow eair=0.0984382791...[/tex]

So, the effective annual interest rate will be approximately 9.84%.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.