Question

For 1≤????≤10, find a formula for p????, the payment in year ???? on a loan of 105000 dollars. Interest is 5 percent per year, compounded annually, and payments are made at the end of each year for 10 years. Each payment is 10500 dollars plus the interest on the amount of money outstanding.

Answer 1

Answer: At the end of 10 years, amount would be $171033.93.

Step-by-step explanation:

Since we have given that

Principal = $ 105000

Rate of interest = 5% p.a.

Number of years = 10 yrs

We need to find the Amount using "Compound interest formula":

$A=P(1+\dfrac{r}{100})^n\\\\A=105000(1+\dfrac{5}{100})^{10}\\\\A=105000(1+0.05)^{10}\\\\A=105000(1.05)^{10}\\\\A=\ 171033.93$

Hence, at the end of 10 years, amount would be $171033.93.