Question

You borrowed $59,000 for 2 years at 11% which was compounded annually. What total

will you pay back?

Answer 1

$72,693.70 would be the answer.

Answer 2

$59000 \times .11 = 6490$
The first year the interest is 6490
$59000 + 6490 = 65490$
Thats how much is owed total for year one
$65490 \times .11 = 7203.9$
Add the interest for year two
$65490 + 7203.9 = 72693.9$
You would pay back $72,693.90 total