Answer:
Explanation:
The question is confusing with regards to what exactly is being asked. it is not clear whether we should calculate the amount she must borrow now if she wants to pay $4500 in 45 days given a 6% note or How much would she pay in 45 days if she borrows $5200 today. I have provided solution for all scenarios.
Value = 4500
r = 0.06/365 = 0.00016484
n = 45 days
Let X be the the amount she must borrow now
Value = X(1 + rn)
4500 = X(1 + 0.00016484 x 45)
4500 = X(1.0074178)
X = 4500/1.0074178 = 4466.8379729
X = 4466.84.
if she wants to pay the exact $4500 she must borrow $4466.84 now
or if she wants to take $4500 she must invest $ 446.84 on a 6% note 45 days.
Future Value of 4500 in 45 days
Future Value = 4500(1 + 0.00016484 x 45) = 45333.3801
Future Value = 45333.38
she would need to pay $45333.38 in 45 days if she takes $4500 now for her trip
