Question

If $25,000 is borrowed with an interest of 8.0% compounded annually, what is the total amount of money needed to pay it

Answer 1

Answer:

$\frac{8}{?100} \times 25000$

=2000

365×10=3650

2000×3650=7300000

Answer 2

$~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 25000\\ r=rate\to 8\%\to \frac{8}{100}\dotfill &0.08\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &10 \end{cases} \\\\\\ A=25000\left(1+\frac{0.08}{1}\right)^{1\cdot 10}\implies A=25000(1.08)^{10}\implies A\approx 53973.12$