Question

An amount of 47,000 is borrowed for 12 years at 8.25% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?

Use the calculator provided and round your answer to the nearest dollar.

Answer 1

$121,683.79

Explanation:

A= P(1+ r)^t

A= Amount, P = Principal, r = Rate (decimal form), t= time

A = 47000(1+0.0825)^12

A = 47000(1.0825)^12

A = 47000(2.589016751)

A = 121683.7873

Rounded Answer = $121,683.79

(If there is meant to be no cents then $121,684). Good luck :)