SOLUTION: Suppose you borrow $500 from a bank that charges 14.5% interest compounded annually. What is the balance you owe after 4 years? Thanks so much for all the help! -Jasmine

Question 119519: Suppose you borrow $500 from a bank that charges 14.5% interest compounded annually. What is the balance you owe after 4 years? Thanks so much for all the help! -Jasmine
Answer by Fombitz(32388) (Show Source): You can put this solution on YOUR website!

where FV is the Future value, P is today's value, R is the interest rate, and T is the compounding time period.
P=$500
R=14.5%
T=4 years (compounded annually)

You would owe $984.00.
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