Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

A you borrows $10000 for 5 years at 12% compound interest. How much will the man have to repay?



please it for a test

Sagot :

Answer:

in 5 years he will have to pay over $10000 he will have to pay almost $100k

Step-by-step explanation:

10486782

Answer:

Correct option is

A

14.2

⇒  Company borrow Rs.10000 i.e. pv=Rs.10000 and I=5%=0.05. A is also given which is Rs.1000

⇒  Present value of annuity regular

⇒  pv=A×[

I×(1+I)

n

(1+I)

n

−1

​

]

⇒  10000=1000×[

0.05×(1+0.05)

n

(1+0.05)

n

−1

​

]

⇒  (1.05)

n

−0.5×(0.5)

n

=1

⇒  (1.05)

n

=2

Taking log both sides

⇒  n=

log1.05

log2

​

∴   n=14.2years

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.