1. Suppose you borrow $2500 for 3 years at 6.5% compounded quartlerly.

a) What is the amount you must repay?

b) how much intrest will you pay?

need help solving this, thanks.

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- Nov 17th 2009, 04:01 PMCdawsonPersonal Finance math review help
1. Suppose you borrow $2500 for 3 years at 6.5% compounded quartlerly.

a) What is the amount you must repay?

b) how much intrest will you pay?

need help solving this, thanks. - Nov 17th 2009, 04:02 PMCdawson
so i don't no if im doing this write, guide me if im not...

The equation you use to solve this is A=P(1+i)^n

A=?

P=$2500

i= .065/4= 0.1625

n= (3) (4)=12

then plug the numbers into the equation,

A=2000(1+0.1625)^12

Im i doing this right? - Nov 17th 2009, 04:15 PMKrahl
- Nov 17th 2009, 04:17 PMCdawson