Question

Brian took eight years to pay off his $71,900 loan. The loan had an interest rate of 8.16%, compounded quarterly. If Brian paid quarterly and made the same payment every time, how much was each payment that he made?
a. $2,342.66
b. $3,081.54
c. $1,022.28
d. $1,466.76

Answer 1

Ok we know that the formula for compound intrest is
\[A=P(1+\frac{ r }{ n })^(nt)\]

So P=$71,900
r=0.0816
n=4(because it is quarterly)
and t=8 (because it took him 8 years to pay off his dept

Answer 2

Sorry about the messed up equation but on the last part its sposed to be to the power of (nt)

Answer 3

So all we have to do is plug in the values like so here

\[A=(71,900)(1+\frac{ 0.0816 }{ 4 })^{6*4}\]

Answer 4

Now calculate this and tell me what you get

Answer 5

137,209.217

Answer 6

Ok lemme check your answer

Answer 7

I actually calculated $116740

Maybe take each part one by one
\[(1+\frac{ .0816 }{ 4 })^{24}=1.6236\]


then
\[71900*1.6236=116740\]

Answer 8

thats not any of my choices though

Answer 9

Hmm how odd what are the choices

Answer 10

a. $2,342.66 b. $3,081.54 c. $1,022.28 d. $1,466.76

Answer 11

Ohhh your calculating each payment ok

Answer 12

so 3months*8years=24months so 116740/24=4864

Answer 13

Hmm :/

Answer 14

makes no sense to me

Answer 15

I dont know aht I did wrong since we calculated the total amount with intrest then I divided it by 4 for each payment

Answer 16

quater

Answer 17

Hold on I think i got it

Answer 18

Drats I got to go. Sorry dude I dont know what to do

Answer 19

:(

Answer 20

it fine