Problema Solution
Charlie borrowed $8000 at a rate of 18%, compounded quarterly. Assuming he makes no payments, how much will he owe after 3 years?
Do not round any intermediate computations, and round your answer to the nearest cent
Answer provided by our tutors
Charlie borrowed $8000 at a rate of 18%, compounded quarterly. Assuming he makes no payments, how much will he owe after 3 years?
A=P(1+r/q)^nq.
=8000*(1+0.18/4)^3*4.
=8000*(1.045)^12.
=$13567.05.