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Ahmet borrows $700 and is charged compound interest at 15% per year. How much will he have to pay back in total after 6 years?

User Secundi
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1 Answer

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Final answer:

To calculate the total amount Ahmet will have to pay back after 6 years, we can use the compound interest formula. In this case, Ahmet will have to pay back a total of $1,540.35 after 6 years.

Step-by-step explanation:

To calculate the total amount Ahmet will have to pay back after 6 years, we can use the compound interest formula:

Final Amount = Principal x (1 + Rate/100)^Time

In this case, the principal is $700, the rate is 15%, and the time is 6 years:

Final Amount = $700 x (1 + 15/100)^6

Simplifying the calculation:

Final Amount = $700 x (1.15)^6

Using a calculator, the Final Amount is approximately $1,540.35.

Therefore, Ahmet will have to pay back a total of $1,540.35 after 6 years.

User Genjosanzo
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