A woman borrowed $30,000 at 2% interest compounded annually. If the loan was paid off in one lump sum at the end of 6 years, how much did she pay?
A) $33,784.87
B) $33,600.00
C) $30,600.00
D) $3784.87

Question

Quizplus · Accepted Answer

The amount paid can be calculated using the formula for compound interest: A = P(1 + r)^n, where A is the amount, P is the principal amount ($30,000), r is the annual interest rate (2% or 0.02), and n is the number of years (6). Plugging in the values: A = 30000(1 + 0.02)^6 = $33,784.87.

A Woman Borrowed $30,000 at 2% Interest Compounded Annually