If you borrow $11 000 for four years at an annually compounding rate of 8.2% per annum,what is the total interest on the loan if the interest due is added to the principal over the period and repaid at the maturity date?
A) $2933.96
B) $3608.00
C) $3842.51
D) $4076.54

Question

Quizplus · Accepted Answer

The total amount after 4 years with compound interest is calculated using the formula A = P(1 + r/n)^(nt). Here, P = $11,000, r = 0.082, n = 1, and t = 4. The total amount A = $11,000(1 + 0.082)^4 = $15,076.54. The total interest is A - P = $15,076.54 - $11,000 = $4,076.54.

If You Borrow $11 000 for Four Years at an Annually