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anonymous

  • 5 years ago

A woman borrowed $10,000 at 12% interest compounded annually. If the loan was paid off in one lump sum at the end of 6 years, how much did she pay? is it the answer 17200 ?

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  1. anonymous
    • 5 years ago
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    850000....

  2. anonymous
    • 5 years ago
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    10000 x (1.12)^6

  3. anonymous
    • 5 years ago
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    A = p(1+r)^t A = 10,000 ( 1.12^6) 10000 * 1.97 = $ 19,738.23

  4. anonymous
    • 5 years ago
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    what formula are you using? to solve this? i think there is Y=Ak^x or y=AB^x same formula just different variable and PMT=PV*(((r/n)/(1-(1+(r/n))^(-nt))

  5. anonymous
    • 5 years ago
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    ishan_meswani seems to bee the right answer

  6. anonymous
    • 5 years ago
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    i have no idea where jasb is getting his answers from i got the same as elecengineer and im sure its correct

  7. anonymous
    • 5 years ago
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    ishan_meswani I know this stuff it's fresh in my memory. since it's so easy to remember. And yes i know you are correct.

  8. anonymous
    • 5 years ago
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    i thought it was solve like this : interest in 6 years = 6x0.12 x 10000 = 7200 so the total gonna be interest + 10000 = 17200 ?

  9. anonymous
    • 5 years ago
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    it can't be that way. Since interest grows. and each year the total is different we could interpret it like this. 10000*1.12=11200 interest from year one. then the second year's interest would be multiplied by 11200*1.12=12544 same as 10000*1.12*1.12=12544

  10. anonymous
    • 5 years ago
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    i got it now , really appreciate

  11. anonymous
    • 5 years ago
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    you are welcome

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