SOLUTION: If $4000 is borrowed at a rate of 5.75% interest per year, compounded quarterly, find the amount due at the end of the given number of years. (Round your answers to the nearest cen

Question 1201176: If $4000 is borrowed at a rate of 5.75% interest per year, compounded quarterly, find the amount due at the end of the given number of years. (Round your answers to the nearest cent.)
4 years:
6 years:
8 years:
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
5.75% per year compounded quarterly = 1.4375% per quarter.
growth factor per quarter = that / 100 + 1 = 1.014375.
present value is 4000.
future value in 4 years = 4000 * 1.04375 ^ 16 = 5026.1632
future value in 6 years = 4000 * 1.04375 ^ 24 = 5634.104312
future value in 8 years = 4000 * 1.04375 ^ 32 = 6315.579128
the equation can be graphed as shown below:

time periods are in quarters of a year.
numberof years has to be multipled by 4.
interest rate per year needs to be divided by 4.

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