If I borrow $20 000 at an interest rate of 9% per annum,compounded monthly and payable quarterly how much interest would I have to pay after three months?
A)$450.00
B)$150.00
C)$453.38
D)$1800.00

Question

Quizplus · Accepted Answer

The interest is compounded monthly, so the monthly interest rate is 9%/12 = 0.75%. After three months, the interest is calculated as $20,000 * (1 + 0.0075)^3 - $20,000 = $453.38.

If I Borrow $20 000 at an Interest Rate of 9