Question

Roy borrows $42,000 to purchase a new truck. How much will Roy need to pay in all if the interest is compounded annually at 3.5% for 10 years? (5 points) $43,125.00 $63,624.00 $59,245.15 $51,709.00

Answer 1

The formula to determine yearly compound interest is 

$a= p(1+r) ^{t}$

a- amount 
p- Is the principal the principal is the amount borrowed
r- is the rate
t- is the time

We will input all the numbers from our question into the formula. 

$a= 42,000(1+0.035) ^{10}$

Our rounded calculation is 59245.15

Roy will have to pay 59245.15