Question

You borrow $3,000 for 14 months at 4% (SA). Interest is charged for Part of a Period. What is the Future Amount owed? Round each answer to the nearest penny.

Answer 1

Amount borrowed = $3,000

Calculating the Future value at the end of 14 months:-

Where,

r = Interest rate = 4%

n= no of periods = 14 months/12 months = 1.1666667

m = no of times compounding in a year = 2 (compounded semi-annually)

Future value = $3141.87

So, the Future Amount owed is $3141.87

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