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The mother of Kriz Anthony was hospitalized and he needs an
amount of P50,000 for the surgery. He decided to borrow money from the bank
with 5% interest rate compounded quarterly payable for 4 years How much
should Kriz pay at the end of the term?​

Respuesta :

JeanaShupp

Answer: Kriz should pay $50,100 at the end of the term.

Step-by-step explanation:

If the interest is compunded quarterly, then the accumulated amount after t years will be:

[tex]A=P(1+\frac{r}{400})^{4t}[/tex] , where P= principal value , r = rate of interest .

Given: P= 50,000 , r= 5% = 0.05, t= 4 years

Then,

[tex]A=50000(1+\dfrac{0.05}{400})^{4(4)}\\\\= 50000(1+0.000125)^{16}\\\\=50000(1.000125)^{16}\\\\=50000(1.002)\\\\=\$50,100[/tex]

Hence, Kriz should pay $50,100 at the end of the term.

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