Question

You borrow $600. You pay 5% interest compounded annually. How much do you owe at the end of 4 years?

A) $648.50
B) $729.30
C) $1,210.40
D) $984.20

Answer 1

i want to say C, but im not completely positive :/ sorry. C sounds right though. Hope this helps!

Answer 2

B) $729.30

Explanation:

The amount of money owed can be calculated using the formula

`A=P(1+r\%)^t`

where P=$600 is the principal

r%=5%, is the rate percent, and

`t=4` is the number of years.

We substitute the values into the formula to obtain;

`A=600(1+5\%)^4`

`A=600(1+0.05)^4`

`A=600(1.05)^4`

`A=729.30` dollars