Allison accumulated $7,000 in credit card debt. If the interest rate is 15% per year and she does not make any payments for 3 years, how much will she owe on this debt in 3 years for quarterly compounding? Round your answer to two decimal places.

Allison will owe $10,888.50 in 3 years

Step-by-step explanation:

FV=PV(1+r/n)^nt

Where,

PV=$7000

r=15%=0.15

n=quarterly=4

t=3 years

FV=PV(1+r/n)^nt

=7000(1+0.15/4)^4*3

=7000(1+0.0375)^12

=7000(1.0375)^12

=7000(1.5555)

=10,888.50

To 2 decimal places=$10,888.50

Allison will owe $10,888.50 in 3 years

$10,888.20

Step-by-step explanation:

Order of Operations: BPEMDAS

Compounded Interest Rate Formula: A = P(1 + r/a)ᵃᵇ

A = Final Amount

P = Initial Amount

r = rate

a = Compounded number

b = time

Step 1: Define

P = 7000

r = 15% = 0.15

a = 4

b = 3 years

Step 2: Solve for A

At the end of the 3 years that elapsed, Allison will have to pay a final debt of $10,888.20.

7. d. 64

8. i. 32

9. c. 125

10. j. none of the above

11. d. 81

12. i. 216

13. e. none of the above

14. g. 240

15. e. none of the above

16. g. 32

17.   e. none of the above