Homework Help: college math

Posted by kerry on Monday, October 8, 2012 at 10:38pm.

Raisel borrowed money from Irlene and agreed to pay back $400 today and $300 in 5 years. If Raisel has a lot of money available now and wants to pay back the loan today, how much money would she have to pay Irlene if the loan was at 6.75% compounded quarterly? For full marks your answer(s) should be rounded to the nearest cent.

the answer is $614.67, but im not sure how to get that!

college math - Reiny, Monday, October 8, 2012 at 10:49pm
i = .0675/4 = .016875

present obligation
= 400 + 300(1.016875)^-20 = 614.67

Answer this Question

Related Questions

Math! - Rebecka borrowed $3500, 5000, 3500,& 4500 from her dad on September ...
Annuity! - When Raisel's son was born, she put $7,500 in an investment that ...
college math - 1. Rebecka borrowed $500, $5,000, $3,500, and $2,000 from her dad...
Math - Ed long promised to pay is son $400 semiannually for 12 years. Assume Ed ...
economics - Eric borrowed 515 dollars today and has agreed to pay back in equal...
Economics - Multiple choice 1. If the friend offers to pay you $1 five years ...
math! - When Raisel's son was born, she put $7,500 in an investment that ...
math - Liam borrowed a sum of money from his parents as an interest free loan to...
Maths - Kate borrowed $19500 to buy a car. She paid the money back, plus ...
Finance - shley is planning to attend college when she graduates from high ...

For Further Reading

First Name:
School Subject:
Answer: