$2000 was borrowed for 4 years with an interest rate of 3% compounded annually. what is the total amount owed at the end of the 4 years.

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

where  

A is the total amount owed  

P is the amount of money borrowed

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

substitute in the formula above  

$2,251.02

Given:

Question:

What is the total amount owed at the end of the 4 years?

The Process:

Compound interest is the interest earned from the initial amount and the interest earned previously. The formula for the balance A of the loan with compound interest is

For interest compounded yearly, we can substitute 1 for n in the formula.

Let us calculate how much the total amount owed at the end of the 4 years.

Thus, the total amount owed at the end of the four years is $2,251.02.

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Notes

What if the interest rate of 3% is compounded monthly (n = 12)?

Keywords: $2000, borrowed, for 4 years, with, an interest rate, 3%, 0.03, compounded annually, what is the total amount owed at the end of the 4 years

1     sepan

2     encuentren

3     tenga

4     hable

5   parezca

6   llegue

the discriminant is 64 + 4*1*12 = 112

this is prime.

step-by-step explanation: