Answer:
The answer to your question is $79,749, to the nearest dollar.
Step-by-step explanation:
45 thousand dollars at 4.5 percent compounded annually for 13 years?
After one year the loan would accrue 4.5% interest, which is 0.045 times $45,000 dollars. Added to the base ($45000) this is (1 + 0.045)* $45,000, or $47,025. (Just over two thousand dollars interest.)
After two years we do this again with the new base, so it is $47,025 times (1.045), or $45,000 times (1.045) times (1.045) which can be written:
45000(1.045)2=49141.125 dollars.
You can see where this is going, I hope. After the thirteenth year we get:
45000(1.045)13≏79,748.8243759089 dollars.
