Question

$325 is borrowed from a bank that charges 4% interest compounded annually. How much is owed after 1 year, 3
years, 7 years, and 20 years?

Answers

  1. Answer:

    338

    365.58

    427.68

    712.12

    Step-by-step explanation:

    for annually compounding interest

    PV(1+i)^n

    for one year

    325(1.04)

    338

    for 3 years

    325(1.04)^3

    365.58

    For 7 years

    325(1.04)^7

    427.68

    for 20 years

    325(1.04)^20

    712.12

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