If John borrowed $30 000 from his mother at a rate of 5% per annum compounded quarterly for 5 years,what is the dollar value of the interest on the loan?
A)$8 461.12
B)$38 461.12
C)$7 500
D)$8 288.45

Question

Quizplus · Accepted Answer

The interest is calculated using the formula for compound interest: A = P(1 + r/n)^(nt). Here, P = $30,000, r = 0.05, n = 4, t = 5. The interest is A - P = $38,461.12 - $30,000 = $8,461.12.

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