Question

Calculate the total payback for a $2500 loan at 9% annual interest for two years. Use the formula M= Pm(1+m)^na/(1+m)^na-1

Answer 1

Answer:

$2970.25

Step-by-step explanation:

Being an annual interest rate you would have to multiply it twice by 1.09 since its two years at a 9% rate. so 2500 x 1.09 = 2725 ...  2725 x 1.09 = 2970.25