Asked by Hannah Millican on Jun 17, 2024
Verified
Ross has just been notified that the combined principal and interest on an amount that he borrowed 27 months ago at 11% compounded quarterly is now $2297.78. How much of this amount is principal and how much is interest?
Compounded Quarterly
A method of calculating interest where the accumulated interest is added to the principal sum every quarter (every three months), affecting the amount on which future interest is calculated.
Principal
The initial amount of money loaned or invested, excluding any interest or dividends.
Interest
The charge for borrowing money or the return on investment, typically expressed as a percentage.
- Derive the contemporary worth of a series of future monetary disbursements or a future one-off sum.
- Ascertain the components of principal and interest within repayments.
Verified Answer
Learning Objectives
- Derive the contemporary worth of a series of future monetary disbursements or a future one-off sum.
- Ascertain the components of principal and interest within repayments.
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