Question

Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in three equal annual installments. the interest paid in the third year is ________.

Answer 1

Amount borrowed = 4500 dollars The amount after 3 years compounded annully, A = P(1+r)^n Therefore, the amount = 4500*(1.09)^3 = 5827.6 Therefore, the compound interest =... Download This Solution