An amount of $3500 is borrowed for 12 years at 7% interest, compounded annually. If the loan is paid in full at the end of the period. How much must he pay back?

Question

anonymous · Answer

3500+3500(1+.07)^12 this much amount he pays back i don't have a calculator so calculation part you do by yourself

anonymous · Answer

?

anonymous · Answer

3500(1+.07)^12  , should just be that, you don't need to add the principle on.

anonymous · Answer

@elecengineer he has to pay back principal too what you are telling is just interest money

anonymous · Answer

no, A=P(1+r)^n is the original borrowings plus interest.

anonymous · Answer

dude just check ur concepts it's only the interest amount

anonymous · Answer

It doesn't really worry me but I am fairly sure you are referring to simple interest

I= Prn , in that case it only takes into account the interest.

anonymous · Answer

thanks