SOLUTION: please help me An amount of $42,000 is borrowed for 5 years at 8.5% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid b

Algebra.Com
Question 1173204: please help me
An amount of $42,000 is borrowed for 5 years at 8.5% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?

Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.

formula becomes f = 42,000 * (1 + .085) ^ 5
solve for f to get:
f = 63,153.58

that's what's owed at the end of the loan period.


RELATED QUESTIONS

please help me An amount of $42,000 is borrowed for 5 years at 8.5% interest,... (answered by ewatrrr)
An amount of 23,000 is borrowed for 5 years at 5.75% interest, compounded annually. If... (answered by Boreal)
Please help An amount of $49,000 is borrowed for 12 years at 7.25% interest,... (answered by ewatrrr)
An amount of $33,000 is borrowed for 5 years at 6.75% interest, compounded... (answered by Boreal)
An amount of $31,000 is borrowed for 7 years at 6.5% interest, compounded annually. If... (answered by reviewermath)
An amount of $15,000 is borrowed for 10 years at 7.75% interest, compounded annually. If... (answered by jorel1380)
An amount of $16,000 is borrowed for 6 years at 9% interest, compounded annually. If the... (answered by mananth)
An amount of $48,000is borrowed for 13 years at 8% interest, compounded annually. If... (answered by rfer)
An amount of $39,000 is borrowed for 6 years at 7.75% interest, compounded annually. If... (answered by Cromlix)