Question

29

= 30
31
An amount of $32,000 is borrowed for 6 years at 6.25% interest, compounded annually. If the loan is paid in full at the end of that period, how much must
paid back

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$32000\\ r=rate\to 6.25\%\to (6.25)/(100)\dotfill &0.0625\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &6 \end{cases} \\\\\\ A=32000\left(1+(0.0625)/(1)\right)^(1\cdot 6)\implies A=32000(1.0625)^6\implies A\approx 46038.78`