Answer: $139390 must be paid back.
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1 + r/n)^nt
Where
A = amount to be played back at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount borrowed.
From the information given,
P = 41000
r = 8.5% = 8.5/100 = 0.085
n = 1 because it was compounded once in a year.
t = 15 years
Therefore,
A = 41000(1 + 0.085/1)^1 × 15
A = 41000(1 + 0.085)^15
A = 41000(1.085)^15
A = $139390
