Answer:
(a) $7492
(b) $10,253
(c) $14,032
Step-by-step explanation:
As we know, the final Amount can be calculated with the formula for compound interest,
A = P(1 + \frac{r}{n} )^{nt}
where,
A = Final Amount due
P = Initial principal amount borrowed
r = rate of interest in decimal
n = number of times applied per time period
t = total time period
Now, according to the given data,
(a) in 4 years ;-
⇒ [tex]A = 4000(1 + \frac{0.16}{4} )^{4(4)}[/tex]
⇒ [tex]A = 7492[/tex]
(b) in 6 years ;-
⇒ [tex]A = 4000(1 + \frac{0.16}{4} )^{4(6)}[/tex]
⇒ [tex]A = 10,253[/tex]
(c) in 8 years ;-
⇒ [tex]A = 4000(1 + \frac{0.16}{4} )^{4(8)}[/tex]
⇒ [tex]A = 14,032[/tex]
