Question

Kira borrowed $8000 at a rate of 17.5% compounded annually. Assuming she makes no payments, how much will she owe after 8 years? Do not round any intermediate computations and round your answer to the nearest cent.

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount}\\\\ A=P\left(1+(r)/(n)\right)^(nt) \qquad \begin{cases} A=\textit{current amount}\\ P=\textit{original amount deposited}\to &\$8,000\\ r=rate\to 17.5\%\to (17.5)/(100)\to &0.175\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, means once} \end{array}\to &1\\ t=years\to &8 \end{cases}`

she'll owe A amount