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%

Question

GarryVolchara [31]

3 years ago

14

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

Mathematics

1 answer:

sveta [45] · Answer 1 · 2022-07-26T06:00:55+03:00

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 <span>59245.15

Roy will have to pay </span>59245.15