A borrows the amount of $10,000 from his friend B. B will charge interest rate of 4.5% which compounds on quarterly basis. A will repay the borrowed amount along with the compounded interest after 5 years (at the end of 5th year). How much A needs to repay?
Answers
Answered by
1
Answer:
$19000
Explanation:
4.5/10000 = .0450 that is $450 for one quarter of the year
450*4 = $1800 for a year
for 5 years 1800*5 = $9000
he has to pay 9000 as compound intrest for 5 years
totally he have to pay compound intrest with borrowed amount is
Comp int + borrowed amnt = 10000 + 9000 = 19000
Answered by
4
Answer:
$19000
Explanation:
4.5/10000 = .0450 that is $450 for one quarter of the year
450*4 = $1800 for a year
for 5 years 1800*5 = $9000
he has to pay 9000 as compound intrest for 5 years
totally he have to pay compound intrest with borrowed amount is
Comp int + borrowed amnt = 10000 + 9000 = 19000
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