Mr Chua borrows a sum of money from the bank which charges a compound interest of 4.2% per annum, compounded quarterly. Given that Mr Chua had to pay $96.60 in interest payments at the end of the first year, find their original sum of money borrowed, giving your answer correct to the nearest cent.

Respuesta :

Answer:

Original sum of money = $2246.51

Step-by-step explanation:

Interest = $96.60

Interest is compounded 6 times in a year ; n = 6

time = 1 year ; Rate of interest (r) = 4.2%