Answer:
she need to pay is $550.40
Step-by-step explanation:
given data
interest = 4.2 % compounded quarterly = 0.042 / 4 = 0.0105
future value = $7000
time = 3 year = 3 × 4 = 12 months
to find out
How much money she need to pay
solution
we will apply here formula for future value for compound quarterly
that is
future value = principal × [tex]\frac{(1+r)^{t} -1 }{r}[/tex] .............1
put here all these value
future value = principal × [tex]\frac{(1+r)^{t} -1 }{r}[/tex]
7000 = principal × [tex]\frac{(1+0.0105)^{12} -1 }{0.0105}[/tex]
principal = 550.40
so she need to pay is $550.40
