Solve the problem.
-A man borrowed $3000 at 10% interest compounded annually. If he paid off the loan in full at the end of 5 years, how much did he pay?
A) $4831.53
B) $1831.53
C) $4500.00
D) $3300.00

Question

Quizplus · Accepted Answer

The amount paid back on a loan with compound interest is calculated using the formula A = P(1 + r)^n, where A is the amount, P is the principal amount ($3000), r is the annual interest rate (10% or 0.10), and n is the number of years (5). Plugging in these values gives A = 3000(1 + 0.10)^5 = 3000(1.61051) = $4831.53.

Solve the Problem. -A Man Borrowed $3000 at 10% Interest Compounded Annually. If