An amount of $45,000 is borrowed for 6 years at 3.75% 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.

Question

Mathematics

Tamara Bentley

20 October, 14:02

An amount of $45,000 is borrowed for 6 years at 3.75% 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.

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Answers (1)

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Brisa Richard · Answer 1

Compound interest growth formula:

A=P x (1+r/100) ^t

A is the end amount

P is the initial (principal) amount

r is the rate

t is the time in years

45000 x 1.0375^6 = $56123