1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lora16 [44]
3 years ago
7

$2000 was borrowed for 4 years with an interest rate of 3% compounded annually. What is the total amount owed at the end of the

4 years.

Mathematics
2 answers:
coldgirl [10]3 years ago
5 0

$2,251.02

<h3>Further explanation</h3>

<u>Given:</u>

  • Amount of initial money borrowed = $2,000
  • Time of borrowing = 4 years
  • Interest rate = 3% compounded annually, therefore 3% equal to 0.03

<u>Question:</u>

What is the total amount owed at the end of the 4 years?

<u>The Process:</u>

Compound interest is the interest earned from the initial amount and the interest earned previously. The formula for the balance A of the loan with compound interest is

\boxed{ \ A = P(1 + \frac{r}{n})^{nt} \ }

  • P = principal (initial amount)
  • r = annual interest rate (in decimal form)
  • t = time (in years)
  • n = the number of periods of interest is compounded per year

For interest compounded yearly, we can substitute 1 for n in the formula.

Let us calculate how much the total amount owed at the end of the 4 years.

\boxed{ \ A = 2,000(1 + 0.03)^{4} \ }

\boxed{ \ A = 2,000(1.03)^{4} \ }

\boxed{ \ A = 2,000 \times 1.12550881 \ }

\boxed{ \ A = 2,251.01762 \ } \rightarrow \boxed{ \ M \approx 2,251.02 \ }

Thus, the total amount owed at the end of the four years is $2,251.02.

- - - - - - -

Notes

What if the interest rate of 3% is compounded monthly (n = 12)?

\boxed{ \ A = 2,000(1 + \frac{0.03}{12})^{12 \times 4} \ }

\boxed{ \ A = 2,000(1.0025)^{48} \ }

\boxed{ \ A = 2,000 \times 1.127328021 \ }

\boxed{ \ A = 2,254.656042 \ } \rightarrow \boxed{ \ M \approx 2,254.66 \ }

\boxed{\boxed{ \ M = \$ 2,254.66 \ }}

<h3>Learn more</h3>
  1. Melanie is looking for a loan brainly.com/question/2708838
  2. How much money did Jenny earn in all?  brainly.com/question/2068148#
  3. What was the sale price of the house? brainly.com/question/1049004

Keywords: $2000, borrowed, for 4 years, with, an interest rate, 3%, 0.03, compounded annually, what is the total amount owed at the end of the 4 years

kompoz [17]3 years ago
4 0

Answer:

\$2,251.02  

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

A=P(1+\frac{r}{n})^{nt}  

where  

A is the total amount owed  

P is the amount of money borrowed

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

t=4\ years\\ P=\$2,000\\ r=3\%=3/100=0.03\\n=1  

substitute in the formula above  

A=2,000*(1+\frac{0.03}{1})^{1*4}  

A=2,000*(1.03)^{4}  

A=\$2,251.02  

You might be interested in
Find the value of b. B² = 256
Jlenok [28]

B^2=256

\mathrm{For\:}x^2=f\left(a\right)\mathrm{\:the\:solutions\:are\:}x=\sqrt{f\left(a\right)},\:\:-\sqrt{f\left(a\right)}

B=\sqrt{256},\:B=-\sqrt{256}

\sqrt{256}

\mathrm{Factor\:the\:number:\:}\:256=16^2

=\sqrt{16^2}

=16

-\sqrt{256} =-16

B=16,\:B=-16

<h3><em>Hope I helped you!</em></h3><h3><em>Success!</em></h3>

<em>by a random romanian guy</em>

7 0
3 years ago
Write 0.16666 as a fraction
olchik [2.2K]

This one you can do by multiplying the number by ten, getting 1.666, or 1+0.66. 0.66 is easy to put into a fraction form as 2/3. add the other 3/3 from the whole 1 to get 5/3. From here you either divide by 10 or multiply by 1/10, as KCF will do that anyways if you divide to get 5/30, or 1/6.

4 0
3 years ago
Read 2 more answers
Which equation shows this relationship?
Alinara [238K]

Answer:  y=x+2

Step-by-step explanation:

8 0
3 years ago
-10+3m+5 can someone help me ASAP
velikii [3]

Answer:

Add   − 10  and  5  

=    3 m −  5

3 0
3 years ago
Fill in the blanks. To multiply a number by 0.01 move the decimal point ____ places to the _______. *
Ghella [55]

Answer:

To multiply a number by 0.01 move the decimal point <u>2</u> places to the <u>left</u>.

Step-by-step explanation:

for example, lets multiply 5 by 0.01

5 x 0.01=0.05

originally, 5 in decimal form is 5.0

when it is multiplied by 0.01, the decimal point moves first from 5.0 to 0.5, then 0.5 to 0.05

8 0
2 years ago
Other questions:
  • You have automatic deposit of your monthly paycheck which, after normal expenses, maintains your balance of $6,350 in your check
    11·1 answer
  • Help me with this only number 1
    6·1 answer
  • 2 doctors is _______% of 25 doctors
    15·1 answer
  • Find the value of x and simplify completely
    13·1 answer
  • Find the value of y if the line through the two given points is to have the indicated slope.
    12·1 answer
  • What’s the answer plz help ?
    7·2 answers
  • 21. Construct quadrilateral ABCD, where AB = 4.5 cm, BC = 5.5 cm, CD = 4 cm, AD = 6 cm,
    6·1 answer
  • Help plz will give brainliest
    7·2 answers
  • HELP , TIMES ALMOST UP!!!!!!
    14·1 answer
  • Find the mean, median, and mode for the data set below.<br> weights of books (oz): 10 9 9 14 13 11
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!