Pregunta
Question
Allison accumulated
in credit card debt. If the interest rate is
per year and she does not make any paym
3 years, how much will she owe on this debt in 3 years for quarterly compounding?
Round your answer to the nearest cent.
Do NOT round until you calculate the final answer
Allison accumulated
3 years, how much will she owe on this debt in 3 years for quarterly compounding?
Round your answer to the nearest cent.
Do NOT round until you calculate the final answer
Ask by Harper Pena. in the United States
Jan 24,2025
Solución de inteligencia artificial de Upstudy
Respuesta verificada por el tutor
Responder
Allison will owe approximately $10,888.18 on her credit card debt in 3 years with quarterly compounding.
Solución

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Respondido por UpStudy AI y revisado por un tutor profesional
Como
Mind Expander
To find out how much Allison will owe in 3 years, we use the formula for compound interest:
Where:
-
is the amount owed after time , -
is the principal amount (initial debt), -
is the annual interest rate (as a decimal), -
is the number of times the interest is compounded per year, and -
is the number of years.
Plugging in the values:
-
, -
, -
(quarterly compounding), -
.
The calculation would be:
Now, calculating
:
Thus:
Therefore, after 3 years, Allison will owe approximately $10,443.78 on her credit card debt.

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