Question

3.8 You borrow $600. You pay 5% interest compounded annually. How much

Answer 1

Answer:

The answer = $ 729.30375

Step-by-step explanation:

The principal amount ( P ) = $ 600 .

Interest rate ( r ) = 5 % annually.

Time period ( t ) =  4 year.

Amount ( A ) = ?

A = $P ( 1 + r )^{t}$ = 600$( 1 + 0.05)^{4}$  = 600 * 1.21550625 = $729.30

Answer 2

Therefore ,I owe  $729.30 at the end of 4 years.

Step-by-step explanation:

Given, I borrow $600. I pay 5% interest compounded annually .

Here P= $600 , r =5% and n = 4 years

${\textrm{Amount}} (A)=P(1+\frac{r}{100} )^n$

                   $= 600 (1+\frac{5}{100})^4$

                   = $729.30

Therefore ,I owe  $729.30 at the end of 4 years.