SOLUTION: Assuming an interest rate of 8% compounded annually. Answer the following question; (a) how much money can be loaded now if $6,000 is to be repaid at the end of five years? (b)

Question 1090066: Assuming an interest rate of 8% compounded annually. Answer the following question;
(a) how much money can be loaded now if $6,000 is to be repaid at the end of five years?
(b) how much money will be required in four years in order to repay a $15,000 loan borrowed now?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
6000=P(1+.08)^5
6000=P*1.4693. Without rounding, divide
P=$4083.50
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P=15000(1.08)^4=$20407.33

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