Question

Kyra borrowed $9,500 for 3 ½ years from a family member to finance her small business....

Kyra borrowed $9,500 for 3 ½ years from a family member to finance her small business. The loan carries interest at 6% compounded quarterly for the first 1 ½ years, increasing to 8% compounded quarterly for the subsequent 2 years. What amount will be required to fully repay the debt if no payments were made before the expiry of the 3 ½ year term? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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Answer #1
First 1.5 Years Total Qtr's
Opening Balance(A) Interest Rate (6%) (B) Total (C=A*B) 42
Qtr -1 9500 570 10070
Qtr -2 10070 604 10674
Qtr-3 10674 640 11315
Qtr-4 11315 679 11994
Qtr-5 11994 720 12713
Qtr-6 12713 763 13476
First 2 Years
Opening Balance(A) Interest Rate (8%) (B) Total (C=A*B)
Qtr-7 13476 1078 14554
Qtr-8 14554 1164 15718
Qtr-9 15718 1257 16976
Qtr-10 16976 1358 18334
Qtr-11 18334 1467 19801
Qtr-12 19801 1584 21385
Qtr-13 21385 1711 23095
Qtr-14 23095 1848 24943
Final Ans 24943
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