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In-s [12.5K]
3 years ago
15

jenny borrowed $500 for 5 years at 4% interest compounded annually. what is the total amount she will have paid when she pays of

f the loan?
Mathematics
1 answer:
alexdok [17]3 years ago
5 0
Use the formula for compound interest,  
  
A=P(1+ \frac{r}{n})^{nt}  
  
Where P is the starting amount (500$), r is the rate of interest (0.04), n is the number of times the interest is compounded per unit (1 per year), and t is the amount of time it is compounded (5 years).  
  
Now, plug it into the formula:  
  
A=500(1+ \frac{0.04}{1})^{5}  
  
Do the math, and your answer is she must pay <span>608.32$ when she pays her debts.</span>
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