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 Reply

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