You owe 8000 on a motorcycle loan the bank charges a compound interest rato 10.9% poor per year per year if you don't make any payments on the loan how much will you owe after 5 years round to your nearest whole cent

Question

Mathematics

Skylar

24 August, 20:01

You owe 8000 on a motorcycle loan the bank charges a compound interest rato 10.9% poor per year per year if you don't make any payments on the loan how much will you owe after 5 years round to your nearest whole cent

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Irvin Mcdaniel · Answer 1

I=P (1 + (r/n)) ^nt

I is the value owed

r is the rate in a decimal

n is the times compounded (annually = 1, quarterly = 4, monthly = 12 etc.)

t is time invested

I=8000 (1 + (.109/1)) ^5x1

I=8000 (1.109) ^5

I=8000 (1.67748)

$13419.84