Question

an amount of $18,000 is borrowed for 10 years at 6.75% interest, compounded annually. if the loan is paid in full at the end of that period, how much must be paid back?

Answer 1

first of all what you do is you multiplie 6,75 by 10 and it equals 67,5 on 100 equals 18 grand on x you need to figure out on x so do fraction x on 18000 equals to 67,5 on 100 what is x equals to 67,5 times 18000 divided by 100 = 12150 plus the amount you took is 18000+12150=30150 is your answer
in ten year is 12150 interest and in total payment is 30150