Ask Question
30 September, 17:18

Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual compound interest rate of 10%. The loan compounds once each year. When you calculate Bruce's debt, be sure to use the formula for annual compound interest. A = P (1+) nt Bruce borrowed $1,000 for his trip. If Bruce waits for five years to begin paying back his loan, how much will he owe?

+1
Answers (1)
  1. 30 September, 18:28
    0
    If Bruce decides to take the loan of US$ 1000 and pay it back in a period of 5 years at a compound annual interest rate of 10% (which compounds once each year), this means that the total amount of money he will end up paying is US$ 1610.51 that is formed by the sum of the original amount loaned ($ 1000) and the interest accumulated during the 5 years ($ 1610.51). This represents an annual payment of US$ 322.1.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual compound interest rate of 10%. The loan ...” in 📘 Social Studies if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers