An amount of 4700 is borrowed for 5 years at 6.75% interest, compound annually. If the loan is paid in full at the end of that period, how much must be paid back

Question

Mathematics

Claudia Barron

23 February, 21:18

An amount of 4700 is borrowed for 5 years at 6.75% interest, compound annually. If the loan is paid in full at the end of that period, how much must be paid back

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Answers (1)

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Anabelle Hernandez · Answer 1

A=p (1+r) ^t

A amount paid at the end of 5 years

P amount borrowed 4700

R interest rate 0.0675

T time 5 years

A=4,700 * (1+0.0675) ^ (5)

A=6,515.34