Question

Suppose you borrow $500 and you plan to pay it back all at once in 5 years. You are charged 2% interest compounded monthly.

What is the total amount you will need to pay when the loan is due?

Round your answer to the nearest dollar.

Answer 1

Answer: $553

Step-by-step explanation: 500(1.0016666)^60

500(1.10507451358)

552.537256789

$553