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An amount of $36,000 is borrowed for 6 years at 4.75% interest, compounded annually. if the loan is paid in full at the end of that period, how much must be paid back?

Respuesta :

apologiabiology
the formula is
[tex]A=P(1+r)^t[/tex]
A=future amount
P=present amount or princpal
r=rate in decimal
t=time in years

so

given
P=36000
r=4.75%=0.0475
t=6

[tex]A=36000(1+0.0475)^6[/tex]
[tex]A=36000(1.0475)^6[/tex]
use your calculator
A=47558.340
round to nearest cent
A=$47558.34

must pay back $47558.34

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