Question

Marco decides to take out a $4,000 student loan during his first year in college. If he is charged 10% interest that is compounded annually, how much will the total loan amount equal in four years when he graduates?

Answer 1

Answer: $5856.40

100+10 = 110

110/100=1.1

4000 X 1.1^4 = 5856.4

$5856.40

Explanation:

110/100=1.1

4000 X 1.1^4 = 5856.4

Answer: $5856.40

Answer 2

100+10 = 110

110/100=1.1

4000 X 1.1^4 = 5856.4

$5856.40