Allison accumulated $7,000 in credit card debt. If the interest rate is 18% per year and she does not make any payments for 6 years, how much will she owe on this debt in 5 years for quarterly compounding? Round your answer to two decimal places.
6 years .....or 5 years?
5 years quarterly compounding means there are 5 x 4 = 20 periods
the periodic interest rate is .18 / 4 = .045
the amount in 5 years will be then:
7000 (1+.045)20 = $ ............
if is six years change the '20' exponent to '24' and re-calculate.....
