an amount of $40,000 is borrowed for 11 years at 7 5% interest compounded annually. If the loan is paid in full at the end of that period,

Question

an amount of $40,000 is borrowed for 11 years at 7 5% interest compounded annually. If the loan is paid in full at the end of that period, how much myst be paid back?

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Jade 1 week 2021-10-04T19:59:31+00:00 1 Answer 0

Answers ( )

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    2021-10-04T20:01:22+00:00

    Amount to be paid back = $ 88,624.36

    Step-by-step explanation:

    Principal amount = $ 40,000

    Rate of interest = 7.5%

    Number of years = 11

    A=P\left(1+\frac{r}{n}\right)^{n t}

    Plugin the values as,

    A=40000\left(1+\frac{7.5}{100}\right)^{11}

    A=40000(1+0.075)^{11}

    A=40000(1.075)^{11}

    A=\$ 88,624.36

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