Question

Mr Chua borrows a sum of money from the bank which charges a compound interest of 4.2% per
annum, compounded quarterly. Given that Mr Chua
had to pay $96.60 in interest payments at the end of
the first year, find the original sum of money borrowed, giving your answer correct to the nearest cent.​

Answer 1

Answer:

SI=p×r×t/100

= 7083.75×4.2×r/100

= 29751.75×t/100

=297.5157