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18 votes
Principal: $4,000

Rate: 7.25%
Time: 8 years
How much money will need to be paid back to the bank for this loan?

1 Answer

4 votes

Answer:

the money required to pay back to the bank for the loan is $7,002

Explanation:

The computation of the money required to pay back to the bank for the loan is given below:

= Principal × (1 + rate of interest)^number of years

= $4,000 × (1 + 0.0725)^8

= $4,000 × 1.0725^8

= $7,002

Hence, the money required to pay back to the bank for the loan is $7,002

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