Question

You need 10,000 to pay for your final college tuition. you find a loan it is compounded quartely at 6.25% for 10 years. how much will the loan actually cost you?
NEED HELP RN PLEASE HELP ME

Answer 1

$\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\ 10000\\ r=rate\to 6.25\%\to \frac{6.25}{100}\to &0.0625\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\to &4\\ t=years\to &10 \end{cases} \\\\\\ A=10000\left(1+\frac{0.0625}{4}\right)^{4\cdot 10} \\\\\\ A=10000(1.015625)^{40}\implies A\approx 18592.39366677226890$