Question

Mrs.Smith borrowed 12,000.00 at 4% for 5 years.How much was the total she paid back?

Answer 1

Answer:14,600

Explanation:

Given

Money borrowed
`P=12,000`

Rate of interest
`R=4\ \%`

Time period
`t=5\ years`

Suppose Money is compounded annually

So total payback at the end of 5 years

`A=P(1+R)^(t)`

`A=12,0000(1+0.04)^(5)`

`A=12000* 1.2166`

`A=14,599.8\approx 14,600`