document.write( "Question 1198387: Jim borrows $200 at 18% per annum compounded quarterly for 7 years. Determine the interest due on the loan. \n" ); document.write( "

Algebra.Com's Answer #831968 by MathLover1(20850) $\"\"$ $\"About$

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The formula for annual compound interest is as follows:\r
\n" ); document.write( "\n" ); document.write( " $\"A+=+P+%281%2B+r%2Fm%29%5E%28mt%29\"$ \r
\n" ); document.write( "\n" ); document.write( "Where:\r
\n" ); document.write( "\n" ); document.write( " $\"A+\"$ - the future amount of the loan
\n" ); document.write( " $\"P\"$ - the initial amount => $\"P=+200+\"$
\n" ); document.write( " $\"r+\"$ - the annual interest rate (in decimal)=> $\"r=0.18\"$
\n" ); document.write( " $\"m+\"$ - the number of times the interest is compounded per year (compounding frequency)=> $\"m=4\"$
\n" ); document.write( " $\"t+\"$ - the numbers of years the money is invested for=> $\"t=7\"$ \r
\n" ); document.write( "\n" ); document.write( " $\"A++=+200+%281%2B+0.18%2F4%29%5E%284%2A7%29\"$
\n" ); document.write( " $\"A++=+200+%281.045%29%5E28\"$
\n" ); document.write( " $\"A++=+200+%281.045%29%5E28\"$
\n" ); document.write( " $\"A++=685.94\"$ \r
\n" ); document.write( "\n" ); document.write( " $\"A+=+P+%2B+I+\"$ where
\n" ); document.write( " $\"P+=+200.00\"$
\n" ); document.write( " $\"I+=+485.94\"$ =>the interest due on the loan\r
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

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