Question 1189620
the loan is 5000.
it must be repaid in 10 years at 4.75% compounded quarterly.
4.75% per year compounded quarterly = 4.75/4 = 1.1875% per quarter.
number of quarters of a year in 10 years = 40.
formula to use is f = p * (1 + r) ^ n
f is the future value
p is the present value
n is the number of time periods
r is interest rate per time period.
the formula uses the interest rate, not the percent.
1.1875% = .011875.
the formula becomes:
f = 5000 * (1 + .011875) ^ 40
solve for f to get f = 8017.604852.
that's how much will have to be paid at the end of the 10 years.
the interest portion of that payment would be that minus 5000 = 3017.604852.
let me know if you have any questions.
theo