SOLUTION: You borrow $9000 to help pay your college expenses. You agree to repay the loan at the end of 7 years at 8% interest, compounded quarterly. (Round your answers to two decimal place

Question 1134102: You borrow $9000 to help pay your college expenses. You agree to repay the loan at the end of 7 years at 8% interest, compounded quarterly. (Round your answers to two decimal places.)
(a) What is the maturity value of the loan?
$
(b) How much interest are you paying on the loan?
$
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
9000(1+(0.08/4))^4*7 = maturity value
.
a) 9000(1.74) = 15660 maturity value of the loan
b) 15660-9000 = 6660 interest on loan

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