Question

12) Find the compound interest for the situation. Use the compound interest formula. Round answer to the nearest hundredth. Include appropriate unit in final answers. Use a calculator if needed.

Cameron borrowed $18,000 at 10% interest for 4 years. How much in interest did he pay?

Find the total amount paid.

Answer 1

$7200

step by step Explanation:

Cameron borrowed $18,000 at an interest rate of 10% for a period of 4 years. To calculate the interest, we can use the simple interest formula: I = P * r * t, where I is the interest, P is the principal amount, r is the interest rate, and t is the time period.

Plugging in the values, we get I = 18,000 * 0.10 * 4 = $7,200. Therefore, Cameron paid a total of $7,200 in interest over the 4-year period.