Question

Marcia Juarez and her brother-in-law have a successful business with several employees. They decide

to borrow $12,000 to pay their next quarterly deposits for payroll tax and federal income tax. They get

the money at 6% compounded monthly and repay all interest and principal after 3 months. How much

do they repay?

Answer 1

$k=6\%,~n=3,~S_0=\$12000.$

$S=S_0(1+\frac{k}{12\cdot100\%})^n=\\=\$12000\cdot1.005^3=\$12180.90$ .