Question

QUESTION
Learning Page
An amount of $49,000 is borrowed for 11 years at 6.5% Interest, compounded annually. If the loan is paid in full at the end of that period, how much must be
paid back?
plz help

Answer 1

Answer:

$97,958.42

Step-by-step explanation:

To solve this problem we can use the compound interest formula which is shown below:

$A=P(1+r )^{t}$

P = initial balance

r = interest rate

t = time

First change 6.5% to its decimal form:

6.5% -> $\frac{6.5}{100}$ -> 0.065

Next plug in the values:

$A=49,000(1+.065)^{11}$

$A=97,958.42$

They have to pay back $97,958.42