Question

Kaitlyn borrowed $19,000 from her mother to buy a car. She will repay the loan at the end of 5 years at 5% interest compounded annually. Find the amount she will repay.

Answer 1

The amount repay the end of 5 years= $24,249.35

Explanation:

S=P(1+i)^n

S=19000(1+0.05)^5

S=24,249.05

i=0.05/1

n=5