Question

An amount of 4700 is borrowed for 5 years at 6.75% interest, compound annually.If the loan is paid in full at the end of that period,how much must be paid back

Answer 1

A=p (1+r)^t
A amount paid at the end of 5 years
P amount borrowed 4700
R interest rate 0.0675
T time 5 years

A=4,700×(1+0.0675)^(5)
A=6,515.34