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NeX [460]
3 years ago
7

Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual compound interest rate of 10%. The

loan compounds once each year. When you calculate Bruce's debt, be sure to use the formula for annual compound interest. A = P (1+)nt Bruce borrowed $1,000 for his trip. If Bruce waits for five years to begin paying back his loan, how much will he owe?
Social Studies
2 answers:
Nady [450]3 years ago
8 0

$1610.51 is the answer or C. on E2020.

Sauron [17]3 years ago
7 0

If Bruce decides to take the loan of US$ 1000 and pay it back in a period of 5 years at a compound annual interest rate of 10% (which compounds once each year), this means that the total amount of money he will end up paying is US$ 1610.51 that is formed by the sum of the original amount loaned ($ 1000) and the interest accumulated during the 5 years ($ 1610.51) . This represents an annual payment of US$ 322.1.

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