Question

Pls help free 51 points

$2,000 was borrowed for 4 years with an interest rate of 3% compounded annually. What is the total amount owed at the end of 4 years?

$251.02


$2,251.02


$240.00


$2,240.00

Answer 1

The answer is $2,240.00

Answer 2

Compound interest formula:

A = P(1+r/n)^nt

A ifs total amount

P = principal

r = interest rate

t = time

n = compound time

A = 2000(1+0.03/1)^4*1

A = $2,251.02