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Tanongnibugoygo
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Andy obtained a loan of $ 125000 from the Allahabad Bank for buying computers. The bank charges compound interest at 8% per annum, compounded quarterly. What amount will he have to pay after 5 years to clear the debt
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Jieeeeeeeego

Answer:

Given:

P = $125,000

i = 8% per annum

m = 4 (quarterly)

n = 5 years

F = ?

Formula:

[tex]F = P {(1 + \frac{i}{m} )}^{n \times m} [/tex]

Solution:

[tex]F = 125,000 {(1 + \frac{0.08}{4} )}^{4 \times 5} [/tex]

F = $185,743.42

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