Laura borrows $5,000 at 10.5% compound. How much does she owe after 4 months?
A. Laura owes $5,177.31 at 10.5% p.a. after 4 months.
Although the question does not state the period over which the 10.5% rate applies, it's reasonable to assume 1 year - normally written
With that assumption, the rate per month
(In this example)
Laura therefore owes