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HELP‼️‼️

Bryn takes out a loan of £800. This debt
increases by 28% every year.
How much money will Bryn owe after 14 years
?
Give your answer in pounds (£) to the
nearest 1p.

User Lkallas
by
7.4k points

1 Answer

4 votes

Answer:

£25,353.01

Explanation:

You want to know the debt in 14 years if it is initially £800 and increases by 28% per year.

Compound interest

The amount with interest compounded is given by ...

A = P(1 +r)^t

where P is the principal borrowed, r is the annual interest rate, and t is the number of years.

Bryn will owe ...

A = 800·1.28^14 ≈ 25353.01

After 14 years Bryn will owe £25,353.01.

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HELP‼️‼️ Bryn takes out a loan of £800. This debt increases by 28% every year. How-example-1
User Zhaochy
by
7.7k points