Larry accumulated $3,000 in credit card debt. If the interest rate is 10% per year and he does not make any payments for 2 years, how much w

Question

Larry accumulated $3,000 in credit card debt. If the interest rate is 10% per year and he does not make any payments for 2 years, how much will he owe on this debt in 2 years for quarterly compounding? Round your answer to two decimal places.

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Gia Bảo 4 years 2021-08-26T12:10:47+00:00 1 Answers 40 views 0

Answers ( )

  1. nguyetanh
    0
    2021-08-26T12:12:26+00:00
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    Answer:

    The amount will be “$3655.21“.

    Step-by-step explanation:

    The given values are:

    Principle,

    P = $3000

    Interest rate,

    r = 10% i.e., 0.1

    Number of times interest,

    n = 4

    Time,

    t = 2 years

    As we know,

    ⇒ A=P[1+\frac{r}{n} ]^{tn}

    On putting the values in the above formula, we get

    ⇒    =3000[1+\frac{0.1}{4} ]^{2\times 4}

    ⇒    =3000[1+0.025]^8

    ⇒    =3000\times 1.2184

    ⇒    =3655.21 ($)

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