Joanie takes a $6,000 loan to pay for her car. The annual interest rate on the loan is 12%. She makes no payments for 4 years, but has to pay back all the money she owes at the end of 4 years. How much more money will she owe if the interest compounds quarterly than if the interest compounds annually? Express your answer as a dollar value to the nearest cent.

Guest Aug 4, 2020

#1**+1 **

Amount she owes compounded quarterly 6000 ( 1 + .12/4)^{(4*4) }=..........

Amount she owes compounded annually 6000(1+.12)^{4} = .........

I'll let you figure out the DIFFERENCE......

ElectricPavlov Aug 4, 2020