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Naddik [55]
3 years ago
14

An amount of 40.000 is borrowed for 6 years at 5% interest, compounded annually If the loan is paid in full at the end of that p

eriod, how much must be paid back? Use the calculator provided and round your answer to the nearest dollar.
Mathematics
1 answer:
Stella [2.4K]3 years ago
4 0

Answer:

A  =  $56,740

Step-by-step explanation:

Use the Compound Amount formula A = P(1 + r)^t.  Substitute 0.05 for r and $40,000 for P:

A = $40,000(1 + 0.05)^6

A  =  $56,740.26, or, rounded off to the nearest dollar,

A  =  $56,740

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