Question

5. If $5000 is borrowed at a rate of 16% interest per

year, compounded quarterly, find the amount due at
the end of 10 years.
A) $24,005.10
C) $5,860.13
B) $5,866.93
D) $8,072.64

Answer 1

• A) $24,005.10

Explanation:

Using formula

• F = P(1+r/4)^(tn)

Substitute values

• F = 5000(1+0.04)^40 = 5000*1.04^40 = 24005.10

Option A is correct