Question

An amount of $26.000 is borrowed for 7 years at 4% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid

back?

Answer 1

26,000 is the initial value( what you started with) since it’s interest you are adding that by 4% compounded annually. The equation would be 26,000( 1 + (.04/1))^7 just plug this into your calculator and you’ll get $34,214.23