A bank offers a loan for $8,000 which earns 4.25% interest compounded annually. What is the correct formula to determine how muc
h someone would owe the bank if they took out this $8,000 loan for 5 years?
A. A = 8,000(1 + 0.0425)5
B. A = 8,000(0.0425)5
C. A = 8,000(0.0425)(5)
D. A = 8,000(1 - 0.0425)5
1 answer:
Answer:
C, A = 8,000(0.0425)5
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