Asked by Kimberly Zayas-Maciel on May 30, 2024
Verified
A $10,000 payment on March 15th was not paid. Instead $10,158.63 was paid earning 6.4% interest compounded monthly. The payment was made on June 13.
Compounded Monthly
The process where the interest earned on an investment is added to the principal each month, so that the interest for the next month is calculated on the total.
Interest
The cost of borrowing money, typically expressed as a percentage of the amount borrowed over a period of time.
- Learn the essentials and calculation techniques for compound interest.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
True
Explanation :
The payment of $10,158.63 includes the original $10,000 plus interest accrued over approximately 3 months at a 6.4% annual rate, compounded monthly, which matches the scenario described.
Learning Objectives
- Learn the essentials and calculation techniques for compound interest.