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 ->  Quadratic Equations and Parabolas  -> Quadratic Equations Lessons -> 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      Log On


   

Question 1173198: 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?
round your answer to the nearest dollar.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!


Hi  

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?

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount ... Calculating

P= principal =  $42,000

r= annual rate = .085

n= periods per year = 1

t= years = 5

A%28t%29+=+42000%281.085%29%5E%285%29

 A = $63,154   (Rounded to the nearest dollar)

Wish You the Best in your Studies.