Exponential growth equation would be
Amount= 80,000 (1+2.75/100)
⁴
At the end of 4 years I would have to repay an amount of $ 89,169.70
Step-by-step explanation:
Since, the amount is loaned it would vary exponentially i.e. in a compounding manner.
We know that for compound interest, the equation is written as-
Amount= principal(1+r/100)
ˣ
Where r- rate of interest which is 2.75% annually
And x= time period= 4 years as in the question
Principal= $ 80,000
Therefore, Equation becomes-
Amount= 80,000(1+2.75/100)
⁴
On solving this Amount would equal $ 89,169.70
Hence, at the end of 4 years I would have to repay an amount of $ 89,169.70.
