Question

An amount of 47000 is borrowed for 5 years at 6.75% interest, compound annually.If the loan is paid in full at the end of that period,how much must be paid back

Answer 1

`\bf \qquad \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to &\$47000\\ r=rate\to 6.75\%\to (6.75)/(100)\to &0.0675\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\to &1\\ t=years\to &5 \end{cases} \\\\\\ A=47000\left(1+(0.0675)/(1)\right)^(1\cdot 5)`