Solve the problem.
-Laura borrows $5000 at a rate of 9% compounded monthly. Find how much Laura owes at the end of 4 years. Use: $A = P \left( 1 + \frac { r } { n } \right) ^ { \text {nt } }$ where:
$\mathrm { A } =$ final amount
$\mathrm { P } = \$ 5000$ (the amount borrowed)
$r = 9 \% = 0.09$ (the annual rate of interest)
$\mathrm { n } = 12$ (the number of times interest is compounded each year)
$t = 4$ (the duration of the loan in years)
A)$241,800.00
B)$7157.03
C)$7872.73
D)$5151.70

Question

Quizplus · Accepted Answer

Using the formula $A = P \left( 1 + \frac { r } { n } \right) ^ { \text {nt } }$ with $P = 5000$, $r = 0.09$, $n = 12$, and $t = 4$, we calculate the final amount $A$ as follows: $A = 5000 \left( 1 + \frac { 0.09 } { 12 } \right) ^ { 12 \times 4 }$, which simplifies to approximately $7157.03.

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Solve the Problem $A = P \left( 1 + \frac { r } { n } \right) ^ { \text {nt } }$