SOLUTION: find the amount Erica owes at the end of three years if $5000 is loaned to her at a rate of 8% compounded monthly

Question 1172648: find the amount Erica owes at the end of three years if $5000 is loaned to her at a rate of 8% compounded monthly
Found 3 solutions by ewatrrr, ikleyn, MathTherapy:
Answer by ewatrrr(24785)   (Show Source): You can put this solution on YOUR website!

Hi
In General
A = Accumulated Amount
P= principal = 5000
r= annual rate = .08
n= periods per year = 12
t= years = 3

Wish You the Best in your Studies.
Answer by ikleyn(52800)   (Show Source): You can put this solution on YOUR website!
.

Future Value = = use your calculator = 6351.19 dollars.

Solved.

----------------

For all details and explanations, look into these two lessons
    - Compound interest percentage problems
    - Problems on discretely compound accounts
in this site, and learn the subject from there.

After reading these lessons, you will tackle such problems on your own without asking for help from outside.

Also, you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lessons are the part of this online textbook under the topic "Logarithms".

Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.

Happy learning (!)

Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!
find the amount Erica owes at the end of three years if $5000 is loaned to her at a rate of 8% compounded monthly

After 3 years, amount owing is:
Doing it the way the other person suggested, will give you the WRONG answer, $6,358.76, which is obviously different from the correct answer above!
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