Answer to Question #55323 in Economics for Antornette Love

Question

You borrow $1500 at 10% annual interest rate, compounded quarterly, and plan to pay back the
loan and interest together at the end of the fifth year. The sum to be paid can be determined from

a.F= 1500(F/P,10%, 5)
b.F= 1500(F/P, 2.5%, 5)
c.F= 300(F/P, 10%, 5)
d.F= 1500(F/P, 2.5%, 20)

Answer 1

You borrow $1500 at 10% annual interest rate, compounded quarterly, and plan to pay back the loan and interest together at the end of the fifth year. The sum to be paid can be determined from F = 1500(F/P,10%, 5).
So, the right answer is a.F= 1500(F/P,10%, 5).