SOLUTION: Suppose that a loan of $6000 is given at an interest rate of 9% compounded each year. Assume that no payments are made on the loan. Find the amount owed at the end of 1 year F

Question 1168218: Suppose that a loan of $6000 is given at an interest rate of 9% compounded each year.
Assume that no payments are made on the loan.
Find the amount owed at the end of 1 year
Find the amount owed at the end of 2 years
Answer by ikleyn(52863) (Show Source): You can put this solution on YOUR website!
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Suppose that a loan of $6000 is given at an interest rate of 9% compounded each year.
Assume that no payments are made on the loan.
(a) Find the amount owed at the end of 1 year
(b) Find the amount owed at the end of 2 years
~~~~~~~~~~~~~~~~~~~~~

(a)  The amount owed at the end of 1 year  is  6000 + 0.09*6000 = 6,540 dollars.


(b)  The amount owed at the end of 2 years is  6540 + 0.09*6540 = 7,128.60  dollars.

Solved.

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