Question

Sara borrowed 500$ for four years at 3% interest compound3d annually . total amt she will pay back.?

Answer 1

compound


`A=P(1+ (r)/(n))^(rt)`

A=future amount
P=present amount
r=rate in decimal
n=number of times per year compounded
t=time in years


A=?
P=500
r=0.03
n=1
t=4


`A=500(1+ (0.03)/(1))^((1)(4))`

`A=500(1+0.03)^(4)`

`A=500(1.03)^(4)`
A=562.754

pay back $562.75