1. ## 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?

2. ## Re: interest due

Is the given rate per annum, and how often is it compounded?

3. ## Re: interest due

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

4. ## Re: interest due

I would guess the interest rate is $6\frac{3}{4}$% and is compounded semi-annually.

5. ## Re: interest due

where did you get 6.384% ?

6. ## 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

7. ## Re: interest due

3500 * .0675 * 9/12 = 177.1875

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