Question

An amount of $28,000 is borrowed for 11 years at 3.75% interest, compounded annually. if the loan is paid in full at the end of that period, how much must be paid back? use the calculator provided and round your answer to the nearest dollar.

Answer 1

Amount owing after 11 years = 28,000(1 + 0.0375)^11

= $41,979 to nearest dollar