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anonymous

  • 5 years ago

If you borrowed $15000 to buy a new car at 6 % interest per year, compounded annually, and paid back the principal and interest at the end of 8 years, how much would you pay back

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  1. anonymous
    • 5 years ago
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    do you know the formula for compound interest?

  2. anonymous
    • 5 years ago
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    is it A= P(1+r/n)^nt?

  3. anonymous
    • 5 years ago
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    and how many times is it compounded per year?

  4. anonymous
    • 5 years ago
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    annually so wouldnt that be once

  5. idily101
    • 5 years ago
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    how many compounds per year then?

  6. anonymous
    • 5 years ago
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    ok so n = 1 r = 6% = 0.06, P =15000 , t = 8 years All you need to do is substitute these values in the equation above to get the total after 8 years.

  7. anonymous
    • 5 years ago
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    ok thanks ill try it out

  8. anonymous
    • 5 years ago
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    great!

  9. anonymous
    • 5 years ago
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    i got 23907.72

  10. anonymous
    • 5 years ago
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    nice!

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