Question #55329

Lets say that you borrow 1200 at 8% annual interest rate, compounded quartly, and plan to pay back the loan and interest together at the end of the third year. The sum to be paid can be determined from:
a. F=1200(F/P,8%,3)
b. F=1200(F/P,2%,3)
C. F=1200(F/P,8%,12)

Expert's answer

If you borrow 1200 at 8% annual interest rate, compounded quarterly, for 3 years, then the sum to be paid can be determined from F=1200(F/P,8%,3).

So, the right answer is a. F=1200(F/P,8%,3).

So, the right answer is a. F=1200(F/P,8%,3).

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