For t=0
<span>Allan borrows--------------------------- > 1870 dollars
for t=6 years
</span>F1 = P*(1 +(r/m))^n
i=r/m
n=m*t---------- >1*6=6
we have
P1=1870
r=8%
m=1
t=6 years
F1 = 1870*(1 +(0.08/1))^6------------------ >2967.45 dollars
for t=2
Allan borrows--------------------------- > 1240 dollars
for t=6 years
F2 = P2*(1 +(r/m))^n
i=r/m
n=m*t---------- >1*4=4
we have
P2=1240
r=8%
m=1
t=4 years------------> (6-2)=4 years
F2 = 1240*(1 +(0.08/1))^4------------------ >1687 dollars
F1+F2=2967.45+1687=4654.45 dollars
the answer is 4654.45 dollars
A repeating decimal can be written like this
S = P[1 + (r / m)]^(m * t)
S = ?
P = 6000 euro
r = 0.07
m = 12
t = 5
S = 6000[1 + (0.07 / 12)]^(12 * 5)
S = 6000(1.00583)^(60)
S = 6000(1.4176...)
<span>S = 8505.75 euro
---------------------------
You can now do the rest which is anually and quarterly.</span>
