An amount of 23000 is borrowed for 11 years at 7.25% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?

Solution

Solution

Amount : 49670.46

Solution steps

Translate the problem into an equation:

A = 23000 (1 + \frac{0.0725}{1})^{1 \cdot 11}

23000 (1 + \frac{0.0725}{1})^{1 \cdot 11} = 49670.45581 \dots

Round to the nearest hundredth:

49670.46

Amount : 49670.46

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