Question 1134098
loan is 9,000.
loan to be paid off at the end of 7 yers at 8% interest per year compounded quarterly.


formula is f = p * (1 + r) ^ n


f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.


time period is quarters.
there are 4 quarters per year.


interest rate per quarter = 8% per year / 100 = .08 per year / 4 = .02 per quarter.


number of quarters = 7 years * 4 = 28 quarters.


since p = 9,000, formula becomes f = 9,000 * (1 + .02) ^ 28.


solve for f to get f = 15,669.21786 = 15,669.22 rounded to two decimal places.


that's the maturity value of the loan.


the interest paid is f - p = 15,669.21786 minus 9,000 = 6,669.21786 = 6,669.22 rounded to two decimal places.