Question 737209: Julie borrows $60,000 from a bank that is charging eight percent interest, compounded annually.
If she pays the loan back in eight years, approximately how much interest will she pay?
a $39,840
b $39,994
c $42,120
d $51,056
Answer by jim_thompson5910(35256)   (Show Source):
You can put this solution on YOUR website! A = P(1+r/n)^(n*t)
A = 60000(1+0.08/1)^(1*8)
A = 111,055.812616912
A = 111,055.81
She pays back $111,055.81 total. So she pays 111,055.81 - 60,000 = $51,055.81 in interest total.
The closest answer choice is choice D since it looks like they rounded to the nearest dollar.
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