suppose that $2000 is loaned at a rate of 13.5%, compounded quarterly. assuming that no payments are made…

suppose that $2000 is loaned at a rate of 13.5%, compounded quarterly. assuming that no payments are made, find the amount owed after 9 years. do not round any intermediate computations, and round your answer to the nearest cent.

suppose that $2000 is loaned at a rate of 13.5%, compounded quarterly. assuming that no payments are made, find the amount owed after 9 years. do not round any intermediate computations, and round your answer to the nearest cent.

Answer

Answer:

$6385.27$

Explanation:

Step1: Identify compound - interest formula

$A = P(1+\frac{r}{n})^{nt}$

Step2: Define the variables

$P = 2000$, $r=0.135$, $n = 4$, $t = 9$

Step3: Substitute values into formula

$A=2000(1 +\frac{0.135}{4})^{4\times9}=2000(1 + 0.03375)^{36}$

Step4: Calculate the value inside the parentheses

$1+0.03375=1.03375$

Step5: Calculate the exponent part

$(1.03375)^{36}\approx3.192634$

Step6: Calculate the final amount

$A = 2000\times3.192634=6385.268\approx6385.27$