Answer:
$46.43
Step-by-step explanation:
First, let's use the compound amount equation,
A = P(1+r/n)^(nt), where P is the principal, r is the annual interest rate as a decimal fraction, n is the # of compounding periods per year, and t is the number of years.
Here,
A = $600(1 + 0.05/4)^(4*[1 1/2]). Let's evaluate this:
A = $600*(1.0125)^6
= $646.43.
This is the amount due after 1.5 years if $600 were the original principal borrowed.
If you want ONLY the compound interest, subtract $600 from $646.43:
Compound interest was $46.43.
