Answer:
$ 3720
Explanation:
As per given case of compound interest :
[tex]A = P (1 + r / n )^n^t[/tex] ; where
A = Final Amount, P = Principle, r = rate of interest , t = no. of time periods, n = no. of compounding per time period
Taking: P = 6000 ; t = 6 months , n = 1 (per month) ; r (annual %) = 4% , so r (monthly % ) = 4 / 12 = 0.33% = 0.0033
[tex]A = 6000 (1 + 0.0033) ^6[/tex]
[tex]A = 6000 (1.0033) ^6[/tex]
A = 6000 (1.0200)
A = 6120 [Total Amount Owed]
Amount paid : 400 per month = 400 x 6 = 2400
Amount student still owes = Total amount owed - Amount paid
6120 - 2400
= 3720
