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cricket20 [7]
3 years ago
13

A loan of $25,475 is taken out at 4.6% interest, compounded annually. If no payments are

Mathematics
1 answer:
N76 [4]3 years ago
6 0

Answer:

It will take 9 years

Step-by-step explanation:

use formula A=P(1+ r/n)^nt

37,500= 25,475(1+.046/1)^1*x

37,500/25,475=1.046^x

1.47203= 1.046^x

try out different numbers for x and use whole number since it asks for the nearest year

1.046^8 = 1.43302 and 1.046^9 = 1.4989

so we know its inbetween

8 and 9 to figure out one is the closest whole number try raising it to the power of 8.5 and if it passes 1.47203 then its 9, if it doesnt then its 8

1.046^8.5 = 1.46561

1.46561< 1.47203

since 1.046561 is lower than 1.47203 its safe to assume that the year is between 8.5-8.99 thus we can round up to 9

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