# interest due

• Sep 15th 2012, 05:31 AM
rcs
interest due
How much interest is due on \$3500 at 6^(3/4) % for nine months?

can anybody manipulate 6^ 3/4 % how is that possible?
• Sep 15th 2012, 05:38 AM
MarkFL
Re: interest due
Is the given rate per annum, and how often is it compounded?
• Sep 15th 2012, 05:44 AM
rcs
Re: interest due
Quote:

Originally Posted by MarkFL2
Is the given rate per annum, and how often is it compounded?

it is said that the interest due is 177.19 ... i only would like to know how it was being done.. thanks
• Sep 15th 2012, 06:00 AM
MarkFL
Re: interest due
I would guess the interest rate is $6\frac{3}{4}$% and is compounded semi-annually.
• Sep 15th 2012, 06:11 AM
rcs
Re: interest due
where did you get 6.384% ?
• Sep 15th 2012, 06:16 AM
MarkFL
Re: interest due

To compute the amount of interest due, use:

$I=P\left(\left(1+\frac{r}{n} \right)^{nt}-1 \right)$

where:

P = principal

r = annual interest rate

n = number of compounding periods per year

t = number of years
• Sep 17th 2012, 07:07 AM
Wilmer
Re: interest due
3500 * .0675 * 9/12 = 177.1875

So that's simple interest. No need for anything else.