Question

sara borrowed 500$ for four years at 3% interest compound3d annually . total amt she will pay back.?

Answer 1

compound

$A=P(1+ \frac{r}{n})^{rt}$

A=future amount
P=present amount
r=rate in decimal
n=number of times per year compounded
t=time in years


A=?
P=500
r=0.03
n=1
t=4

$A=500(1+ \frac{0.03}{1})^{(1)(4)}$
$A=500(1+0.03)^{4}$
$A=500(1.03)^{4}$
A=562.754

pay back $562.75