Posted by **Thara!** on Saturday, March 20, 2010 at 6:01pm.

Rebecka borrowed $3500, 5000, 3500,& 4500 from her dad on September 1 of each of four successive years for college expenses. Rebecka and her dad agreed to a loan at the rate of 8.75% compounded quarterly. If it is now 2 years from the last day that she borrowed money, how much woruld Rebecka owe?

The correct answer is $22,352.25

but i got the wrong answer, and the formula for this question is

FV=PV(1+i/4)^4*n

i=j/m

=8.75%/4

=0.021875

n= mt

=(4)(2)

= 8

FV=3500(1+.021875/4)^4*8

=4167.37

FV=5000(1+.021875/4)^4*8

=5953.40

FV=3500(1+.021875/4)^4*8

=4167.37

FV=4500(1+.021875/4)^4*8

=5358.05

then i sum all up and i get $19,646.19 and the answer should be $22,352.25

!!!

- Math! plz help! -
**Reiny**, Saturday, March 20, 2010 at 6:44pm
Assuming you placed the loans in the correct order,

the first $3500 earns interest for 20 periods (5 years)

the $500 earns interest for 16 periods (4 years)

the $3500 for 12 periods (3 years)

and the last $4500 for 8 periods (2 years)

You would need

4500(1.021875)^8 + 3500(1.021875)^12 + 5000(1.021875)^16 + 3500(1.021875)^20

= 20352.28

which is their answer.

I carried all my digits of my 10 digit calculator.

- Math! plz help! -
**Thara!**, Saturday, March 20, 2010 at 7:16pm
thnx Reiny!!! :-D

## Answer This Question

## Related Questions

- Math! - Rebecka borrowed $3500, 5000, 3500,& 4500 from her dad on September 1 of...
- college math - 1. Rebecka borrowed $500, $5,000, $3,500, and $2,000 from her dad...
- college - Find the future value of $3500 at 3% compounded quarterly for 2 years
- math - The Ramsey's assets are to be divided among their three children Agnessa...
- math - Phillip opened a savings account with an annual interest rate of 8% and ...
- math 205 - How much must be invested today at 8% compounded quarterly to have ...
- math - suppose that $3500 is borrowed for three years at an interest rate of 4% ...
- math help plz! - Calculate the future value of quarterly payments of $1200 for 5...
- MATH - If I deposit $3500.00 into an account with a annual rate of 4.5 ...
- Math - A 3500-seat theater sells tickets for $75 and $110. Each night the ...

More Related Questions