Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Amount of $28,000 is borrowed for nine years at 3.25 interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?Round your answer to the nearest dollar$=

Sagot :

Given:

Principal amount = $28,000

Time period = 9 years

Interest rate = 3.25

Required:

Find the total amount at the end of the period.

Explanation:

The amount formula when the interest is compounded annually is given by the formula:

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

Where P =principal amount

r = rate of interest

T = time period

n = Number of time

Substitute the given values in the amount formula.

[tex]\begin{gathered} A=28,000(1+0.0325)^9 \\ A=28,000(1.33355) \\ A=37,339.51 \\ A=37,340 \end{gathered}[/tex]

Final Answer:

Thus the amount after 9 years is $37,340.

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.