Business Math

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Lee Willis loaned Audrey Chin $16000 to open Snip Its Hair Salon. After 6 years, Audrey will repay Lee with 8% interest compounded quartly. How much will Lee receive at the end of 6 years?

  • Business Math -

    P = Po(1+r)^n.

    r = (8$/4)/100% = 0.02 = Quarterly % rate expressed as a decimal.

    n = 4comp/yr * 6yrs. = 24 Compounding
    periods.

    Solve the given Eq for P.
    Answer: $25,735.00.

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