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Problem Page An amount of $ 15,000 is borrowed for 8 years at 9 % interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back? Use the calculator provided and round your answer to the nearest dollar.

Respuesta :

Ashraf82

It must be paid back $29,888 to the nearest dollar

Step-by-step explanation:

The formula of the compounded interest is:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex] , where

  • A is the future value of the investment/loan, including interest
  • P is the principal investment amount (the initial deposit or loan amount)
  • r is the annual interest rate (decimal)
  • n is the number of times that interest is compounded per unit t
  • t is the time the money is invested or borrowed for

An amount of $ 15,000 is borrowed for 8 years at 9 % interest,

compounded annually. If the loan is paid in full at the end of that period

we need to find how much must be paid back

∵ The amount of $ 15,000 is borrowed for 8 years at 9 % interest,

   compounded annually

∴ P = $15,000

∴ r = (9/100) = 0.09

∴ n = 1 ⇒ compounded annually

∴ t = 8 years

- Substitute all of these values in the formula above

∴ [tex]A=15,000(1+\frac{0.09}{1})^{(1)(8)}[/tex]

∴ A = $29,888.43

- Approximate it to the nearest dollar

∴ A = $29,888

It must be paid back $29,888 to the nearest dollar

Learn more:

You can learn more about interest in brainly.com/question/10672611

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