$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?
Question
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?
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