Help please!!!!!

Question

Adisa borrows $5,000 at 7.5% interest compounded each year. How much does she owe at the end of 8 years?

Answer 1

A = P(1+r/n)^nt is the general formula, r=interest rate, n=number of compounding periods per year. t= years

r=7.5% = .075, t = 8, P=5,000 n=1

A = 5000(1.075)^8 = $8,917.39

year zero, 5000

year one 5000(1.075) = 5375

year two 5375(1.075) = 5775

three 6211

four 6677

five 7178

six 7717

seven 8295

eight years and she owes 8295(1.075) = $8,917.39 rounded to nearest cent