Question

Suppose you loan $320 to a friend and charge them 11% annual interest. If they don't pay you back, how much will they owe you after five years? Round your answer to the nearest hundredth (2 places after the decimal).

Answer 1

After five years it will be loan plus interest over five years.

`320+\text{ 5}\cdot(0.11\cdot320)=496`