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scott borrowed $250.00 from a relitive for 9 months. He agreed to pay interest at the rate of 4% per month.

 Apr 9, 2015

Best Answer 

 #1
avatar+118677 
+5

I don't know what  'relitive' is supposed to be - but

If Scott borrowed $250   and the interest rate is 4% per month (compounded) then after 9 months he will owe

 

FV=250*(1+0.04)^9 = $${\mathtt{250}}{\mathtt{\,\times\,}}{\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\mathtt{0.04}}\right)}^{{\mathtt{9}}} = {\mathtt{355.827\: \!953\: \!105\: \!371\: \!136}}$$

 

that is  $355.83

 

and that is if he doesn't make any payments along the way.

 Apr 10, 2015
 #1
avatar+118677 
+5
Best Answer

I don't know what  'relitive' is supposed to be - but

If Scott borrowed $250   and the interest rate is 4% per month (compounded) then after 9 months he will owe

 

FV=250*(1+0.04)^9 = $${\mathtt{250}}{\mathtt{\,\times\,}}{\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\mathtt{0.04}}\right)}^{{\mathtt{9}}} = {\mathtt{355.827\: \!953\: \!105\: \!371\: \!136}}$$

 

that is  $355.83

 

and that is if he doesn't make any payments along the way.

Melody Apr 10, 2015

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