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19 votes
19 votes
You borrowed $1,690 for 10 months at 5.7% compounded monthly. what is the total you will pay back ?

User Hamlet Kraskian
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1 Answer

26 votes
26 votes

Given the information, we have the following:


\begin{gathered} FV=PV(1+r)^n \\ PV=1690 \\ r=(0.057)/(12)=0.00475 \\ n=(10)/(12) \end{gathered}

Then, making the substitution of each value, we have the following:


FV=1690(1.00475)^{(10)/(12)}=1696.68

Therefore, the total to pay back is $1696.68

User Daniil Palii
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