Question

Roy borrows $42,000 to purchase a new truck. How much will Roy need to pay in all if the interest is compounded annually at 3.5% for 10 years? (5 points) $43,125.00 $63,624.00 $59,245.15 $51,709.00

Answer 1

The formula to determine yearly compound interest is


`a= p(1+r) ^(t)`

a- amount
p- Is the principal the principal is the amount borrowed
r- is the rate
t- is the time

We will input all the numbers from our question into the formula.


`a= 42,000(1+0.035) ^(10)`

Our rounded calculation is 59245.15

Roy will have to pay 59245.15