Question

An amount of $45,000 is borrowed for 13 years at 6.75% interest, compounded annually. If the loan

paid back
Use the calculator provided and round your answer to the nearest dollar,

Answer 1

$104850

Explanation:

Given data

Principal= $45,000

Time = 13 years

Rate= 6.75%

the compound interest expression is

A= P(1+r)^t

A=45000(1+0.0675)^13

A= 45000(1.0675)^13

A= 45000*2.33

A= $104850

Hence the final amount will be $104850