Brent Pickett borrowed 4000 from his brother Dave. He agreed to repay the money at the end of 2 years, giving Dave the same amount of interest that he would have received if the money had been invested at 1.25% compounded quarterly. How much money did Brent repay his brother?

Solution

Solution

Amount : 4101.1

Solution steps

Translate the problem into an equation:

A = 4000 (1 + \frac{0.0125}{4})^{4 \cdot 2}

4000 (1 + \frac{0.0125}{4})^{4 \cdot 2} = 4101.10061 \dots

Round to the nearest hundredth:

4101.1

Amount : 4101.1

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Brent Pickett borrowed ​4000 from his brother Dave. He agreed to repay the money at the end of 2 ​years, giving Dave the same amount of interest that he would have received if the money had been invested at 1.25​% compounded quarterly. How much money did Brent repay his​ brother?

Solution

Solution

Popular Examples

Brent Pickett borrowed 4000 from his brother Dave. He agreed to repay the money at the end of 2 years, giving Dave the same amount of interest that he would have received if the money had been invested at 1.25% compounded quarterly. How much money did Brent repay his brother?