SOLUTION: I owed $1,975 to a pension program in July, 1983. If interest on that amount is calculated at a rate of 8.5% annually.... how much would I owe July, 2009?

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Question 208329: I owed $1,975 to a pension program in July, 1983. If interest on that amount is calculated at a rate of 8.5% annually.... how much would I owe July, 2009?
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
I assume it is 8.5% per yr on the unpaid balance.
A=P(1+r)^t
A=1975(1+.085)^16
A=1975(3.689)
A=$7285.22