Question

If you borrow $1000 at 5% interest per year, compounded quarterly, and pay back the principal and interest after four years, the amount that you pay back is $______ .

Answer 1

it is the same as the other problem. you can do this on your own. C'mon!

Answer 2

ok sorry the wording just throws me off thanks

Answer 3

okay. the best way to learn is to think about what the problem says. good luck!

Answer 4

i got 1219.89

Answer 5

thanks alot for your help!

Answer 6

you are welcome!

Answer 7

i had one more question if you have time

Answer 8

yes, but you have to think about it. I won't answer it okay?

Answer 9

ok i will let me look at it again to make sure its not the same type haha

Answer 10

i tried I= PRT but it didnt look right

Answer 11

Suppose that you take out an unsubsidized Stafford loan on September 1 before your junior year for $4500 and plan to begin paying it back on December 1 after graduation and grace period 27 months later. The interest rate is 6.8%. How much of what you will owe will be interest?

Answer 12

ok lets count. how many years and months is sept 1 before junior year to december 1 on graduation?

Answer 13

is it 16 months

Answer 14

are you sure?

Answer 15

thats what i counted from sept to the next dec

Answer 16

ok lets see. sept 1 to oct 1 is one month. oct 1 to november 1 is one month. nov.1 to dec.1 is one month. so sept 1 to december 1 is 3 months, correct? and then december 1 to the next december 1 is 12 months. what is the total number of months?

Answer 17

oh i messed up on those first 3 months, so its 15

Answer 18

so now would you just use the same equation and plug in these numbers?

Answer 19

okay and you have a grace period of 27 month additionally. So how many months do you have totally to repay the loan?

Answer 20

you would have 42

Answer 21

Okay. so lets express 42 months in years, since the interest rate is per year I am assuming?

Answer 22

so how many years is 42 months?

Answer 23

3.5 years

Answer 24

okay so now you have years, interest rate and principal amount. Do you need anything else to calculate total amount?

Answer 25

well since we are just trying to find interest i think thats all i would need

Answer 26

then there you go! But what does the problem ask?

Answer 27

it asks how much of what you owe will be interest

Answer 28

so how will you find that?

Answer 29

i got 1071

Answer 30

i did (4500)(.068)(3.5)

Answer 31

why did you do that?

Answer 32

thats to find the actual interest rate isnt it, hm would i just use compound interest again/ sorry i suck at math

Answer 33

no no you are right. you got the correct answer. But you should be able to say why you got that answer. Don't get intimidated by problems.

Answer 34

ok thanks i just have zero confidence with math

Answer 35

math is simple. If you think step by step and logically, it reduces into smaller bits of problem which you can solve easily.

Answer 36

ok ill try, thanks for all your help i really appreciate it

Answer 37

you are welcome.