Question

Find the amount Erica owes at the end of 3 years if ​$6400 is loaned to her at a rate of 7% compounded monthly.

Answer 1

$7840

Explanation:

Given data

P=6400

r=7%

t= 3 years

The compound interest expression is given as

A= P(1+r)^t

Substitute

A= 6400(1+0.07)^3

A= 6400(1.07)^3

A= 6400*1.225

A= $7840

Hence at the end of 3 years she owes $7840