Answer:
We say that $16911.28 is compound interest of 50,000 for 5 year from now ,at 6% compound annually. The total amount needed to pay off the loan $66,911.28
Step-by-step explanation:
Given that,
[tex]P=50,000[/tex]
[tex]r=6[/tex]%
[tex]t=5[/tex] years
[tex]A=?[/tex]
According to formula [tex]A=P\left ( 1+\frac{r}{100} \right )^{t}[/tex]
[tex]A=50,000\left ( 1+\frac{6}{100} \right )^{5}[/tex]
[tex]A=50,000\left ( 1+0.06 \right )^{5}[/tex]
[tex]A=50,000\left ( 1.06 \right )^{5}[/tex]
[tex]A=66911.28[/tex]
[tex]CI = A-P[/tex] ( CI = compound interest)
[tex]CI=66,911.28-50,000.00[/tex]
[tex]CI=16,911.28[/tex]
Total amount needed to pay off loan= [tex]\left ( 50,000.00+16,911.28 \right )[/tex] = $66,911.28
Compound interest $16911.28
