Problema Solution
If you borrow 10,00 dollars for three years at a quarterly compounding interest rate of 4% per year, how much interest will you pay?
Answer provided by our tutors
10.00 * (1.04)^9
14.23
Interest paid = 14.23 - 10.00 = $4.23
If the correct amount should have been $10,000, then we have
10000*(1.04)^9
14233.1
Interest paid = 14233 - 10000 = $4233