can u get the answer please

Question

Suppose that $2000 is loaned at a rate of 19%, compounded annually. Assuming that no payments are made, find the amount owed after 7 years.

Do not round any intermediate computations, and round your answer to the nearest cent.

$___________

Answer 1

Ledjnx

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

Answer 2

A = A₀(1 + r)^t. AQ = 2000(1 + 0.19)⁷ = $6758.63