Question

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

Answer 1

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