Question
Chandra borrows some money at 7.2%/a compounded annually. After
5 years, she repays $12 033.52 for the principal and the interest. How much
money did Chandra borrow?
5 years, she repays $12 033.52 for the principal and the interest. How much
money did Chandra borrow?
Answers
HenrComp./yr * 5yrsy
P = Po(1+r)^n.
r = 7.2% / 100% = 0.072 = Annual % rate expressed as a decimal.
n = iComp/yr * 5yrs = 5 Compounding
periods.
P = Po(1.072)^5 = 12,033.52
1.41571Po = 12,033.52
Po = $8500. = Amt. borrowed.
r = 7.2% / 100% = 0.072 = Annual % rate expressed as a decimal.
n = iComp/yr * 5yrs = 5 Compounding
periods.
P = Po(1.072)^5 = 12,033.52
1.41571Po = 12,033.52
Po = $8500. = Amt. borrowed.