Sara borrowed $500 for four years at 3 percent interest, compounded annually. Use the formula to calculate the total amount she

Question

3 years ago

13

will have paid back. $515.03 $562.75 $2060

2 answers:

Mama L [17] · Answer 1 · 2022-08-21T00:46:12+03:00

8 0

A=500×(1+0.03)^(4)
A=562.75

ikadub [295] · Answer 2 · 2022-08-21T02:46:14+03:00

Answer: $562.75

Step-by-step explanation:

Given : Principal amount ( Initial amount) P=$500

Time period x= 4 years

Rate of interest r= 3%=0.03

We know that the compound amount after x years will be given by :-

$A=P(1+r)^x$

According to the given question, we have

$A=500(1+0.03)^4\\\Rightarrow\ A=500(1.03)^4\\\Rightarrow\ A=562.7544\approx562.75$

Hence, the total amount Sara will have paid back = $562.75