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QUESTION
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An amount of $49,000 is borrowed for 11 years at 6.5% Interest, compounded annually. If the loan is paid in full at the end of that period, how much must be
paid back?
plz help

Respuesta :

qop

Answer:

$97,958.42

Step-by-step explanation:

To solve this problem we can use the compound interest formula which is shown below:

[tex]A=P(1+r )^{t}[/tex]

P = initial balance

r = interest rate

t = time

First change 6.5% to its decimal form:

6.5% -> [tex]\frac{6.5}{100}[/tex] -> 0.065

Next plug in the values:

[tex]A=49,000(1+.065)^{11}[/tex]

[tex]A=97,958.42[/tex]

They have to pay back $97,958.42

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