Question

An amount of $49,000 is borrowed for 15 years at 3.5% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be

paid back?
round your answer to the nearest dollar.

Answer 1

`\boxed{\sf \ \ \ $82,092 \ \ \ }`
`\large\boxed{\sf \ \ \ \$82,092 \ \ \ }`

Explanation:

Hello,

At the beginning we have $49,000

After the first year we get 49,000*(1+3.5%)=49,000*1.035

After n years we get

`49,000\cdot1.035^n`

So in 15 years it comes

`49,000\cdot1.035^(15)=82,092.09...`

rounded to the nearest dollar is $ 82,092

Hope this helps