A finance company offers a promotion on $5000 loans. The borrower does not have

Question

A finance company offers a promotion on $5000 loans. The borrower does not have to make any payments for the first two years, however interest will continue to be charged to the loan at 29.2% compounded continuously. What amount will be due at the end of the two year period, assuming no payments are made? (Round your answer to the nearest cent.) $6566.58 If the promotion is extended an additional two years, and no payments are made, what amount would be due? (Round your answer to the nearest cent.) $6627.79

Explanation / Answer

Principal=$5,000

Interest rate=29.2%

Compunding yearly=

Year   

1 5000+(1+29.2%)=6,460

2 6460+(1+29.2%)=8346.32

3 8346+(1+29.2%)=10,783

4 10783+(1+29.2%)=13,932

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.