Question

The mother of Kriz Anthony was hospitalized and he needs an

Answer 1

Answer: Kriz should pay $50,100 at the end of the term.

Step-by-step explanation:

If the interest is compunded quarterly, then the accumulated amount after t years will be:

$A=P(1+\frac{r}{400})^{4t}$ , where P= principal value , r = rate of interest .

Given: P= 50,000 , r= 5% = 0.05, t= 4 years

Then,

$A=50000(1+\dfrac{0.05}{400})^{4(4)}\\\\= 50000(1+0.000125)^{16}\\\\=50000(1.000125)^{16}\\\\=50000(1.002)\\\\=\ 50,100$

Hence, Kriz should pay $50,100 at the end of the term.