Final answer:
Nwosu owes approximately $8346.11 at the end of the third year.
Step-by-step explanation:
To calculate the amount owed at the end of the third year, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where A is the final amount, P is the principal (initial amount borrowed), r is the annual interest rate (in decimal form), n is the number of times interest is compounded per year, and t is the number of years.
In this case, Nwosu borrows $7000 at an interest rate of 6% per year, compounded annually. The principal is $7000, the interest rate is 6% or 0.06, there is one compounding per year (n=1), and we are interested in the amount owed after 3 years (t=3).
Using the formula, we can calculate the final amount owed:
A = 7000(1 + 0.06/1)^(1*3) = 7000(1 + 0.06)^3 = 7000(1.06)^3 = 7000(1.191016) ≈ $8346.11
Therefore, at the end of the third year, Nwosu owes approximately $8346.11.