College Algebra

Question

an amount of $33000 is borrowed for 7 years at 4.5% interest compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?

Answer 1

A =P(1+r)^t

A = 33000(1.045)^7

A = $44,908.44 paid back after 7 years on a $33,000 loan

full compounding formula is

A= P(1+r/n)^nt with n= number of compounding periods per year, t= years, r= annual interest rate