FV = PV (1+ i)n n is the number of periods 5 yr x 4 = 20 periods
i = decimal inteest PER PERIOD = .044/4
PV = present value = loan amount = 11200
FV = futere value
FV = 11200 ( 1 + .044/4)20 = $ 13939.31 interest earned = 13939.31 - 11200 =..........
2.) Same equation with different numbers:
128500 = PV (1 +.065/2 )16 Solve for PV