# SOLUTION: Mr. Obama borrows money at 6% compound monthly . Two years later, he pays off the loan with a single payment of \$5000. How much did he borrow?

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 Click here to see ALL problems on Probability-and-statistics Question 237359: Mr. Obama borrows money at 6% compound monthly . Two years later, he pays off the loan with a single payment of \$5000. How much did he borrow?Answer by stanbon(57984)   (Show Source): You can put this solution on YOUR website!Mr. Obama borrows money at 6% compound monthly . Two years later, he pays off the loan with a single payment of \$5000. How much did he borrow? ------------- A(t) = P(1+(r/n))^(nt) 5000 = P(1+0.06/12)^(12*2 --- 5000 = P(1.005)^24 P = 5000/1.12716 P = \$4435.93 is the amount he borrowed. ========================================= Cheers, Stan H.