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3 votes
Sara borrowed 500$ for four years at 3% interest compound3d annually . total amt she will pay back.?

1 Answer

6 votes
compound


A=P(1+ (r)/(n))^(rt)

A=future amount
P=present amount
r=rate in decimal
n=number of times per year compounded
t=time in years


A=?
P=500
r=0.03
n=1
t=4


A=500(1+ (0.03)/(1))^((1)(4))

A=500(1+0.03)^(4)

A=500(1.03)^(4)
A=562.754

pay back $562.75
User RSinohara
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