Kyle took out a seven-year loan of $8,000 loan from his bank. The bank charges an interest rate of 5 percent, compounded yearly.

Question

3 years ago

9

Kyle wants to know the total amount he will have to pay back.

2 answers:

Nookie1986 [14] · Answer 1 · 2022-02-11T09:32:07+03:00

Assuming the loan is as described, seven-year loan, which means that Kyle does not repay a cent before seven years.

This is a compound interest problem where n=7 years, interest rate i=0.05, and present value P=8000.

At the end of seven years, Kyle will have to pay

Future value = F = P(1+i)^n = 8000(1.05)^7 = 11256.80 (to the nearest cent)

VMariaS [17] · Answer 2 · 2022-02-11T12:00:27+03:00

3 0

Answer:

A = 8,000 (1 + 0.05)7

Step-by-step explanation:

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