An amount of $32,000 is borrowed for 10 years at 5.75% Interest, compounded annually. If the loan is paid in full at the end of
1 answer:
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Answer:
$1545.65.
Step-by-step explanation:
We have been given that Victor has a credit card with an APR of 13.66%, compounded monthly. He currently owes a balance of $1,349.34.
To solve our given problem we will use compound interest formula.
, where,
A = Final amount after t years,
P = Principal amount,
r = Interest rate in decimal form,
n = Number of times interest is compounded per year,
t = Time in years.
Let us convert our given interest rate in decimal form.
Upon substituting our given values in compound interest formula we will get,
≈ $
Therefore, Victor will owe an amount of $1545.65 after one year.
