Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Ask your questions and receive precise answers from experienced professionals across different disciplines. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

A certain loan program offers an interest rate of 2% compounded continuously. assuming no payments are made how much would be owed six years on a loan of $2300

Sagot :

raphealnwobi

The amount of money owed on a loan of $2300 for six years is $2590.17

The compound interest on a principal is given by:

[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]

Where A is the final amount, r is the rate, P is the principal, t is the period and n is the number of times compounded in a period.

Given that:

P = 2300, r = 2% = 0.02, n = 1, t = 6 years, hence:

[tex]A=2300(1+\frac{0.02}{1} )^{6*1}\\\\A=2590.17[/tex]

The amount of money owed on a loan of $2300 for six years is $2590.17

Find out more at: https://brainly.com/question/14295570

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.