If John borrowed $30 000 from his mother at a rate of 5% p.a.compounded quarterly for 5 years,what is the dollar value of the interest on the loan?

Question

Quizplus · Accepted Answer

The future value of the loan is calculated using the formula for compound interest: $ FV = P(1 + \frac{r}{n})^{nt} $. Here, $ P = 30,000 $, $ r = 0.05 $, $ n = 4 $, and $ t = 5 $. The future value is approximately $38,461.12. The interest is the future value minus the principal, which is $38,461.12 - $30,000 = $8,461.12.

If John Borrowed $30 000 from His Mother at a Rate