Question

Suppose you borrow $26000 at an annual interest rate of 5%. For 3 years, you do not make any payments. Find the interest accrued over this time period if the interest is compounded as follows. Round your answers to the nearest cent.

Answer 1

Answer:

Find the interest accrued over this time period

$4098,25

Explanation:

Borrow I% interest  

Year 1 26000 5% 1300 27300

Year 2 27300 5% 1365 28665

Year 3 28665 5% 1433,25 30098,25

                                        4098,25