Mike D. answered • 07/30/20

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Year Owed at start of year Interest Owed at end of year

1 2000 2000 x 0.19 2000 + 2000 x 0.19 = 2000 x 1.19

2 2000 x 1.19 2000 x 1.19 x 0.19 2000 x 1.19 + 2000 x1.19 x 0.19 = 2000 x 1.19 x 1.19

So after n years, amount owed = 2000 x 1.19 ^{n}

So you just need to find this, when n = 7, and round the answer to the nearest cent.

Mike