Question

You borrow $7000 to help pay your college expenses. You agree to repay the loan at the end of 7 years at 9% interest, compounded quarterly. (Round your answers to two decimal places.)

(a) What is the maturity value of the loan?

Answer 1

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Explanation:

So first, you need to multiply 7 by four to get the quarterly part of it, which will be 28. Then, multiply 9% (.9) by your 28 to get 25.2. Finally, multiply that by 7,000 to get 176,400...