Question

Suppose a bank loans $4,500 at an interest rate of 5.5% compounded annually. Find the total amount of interest owed on the loan after 6 years.

A.
$247.50

B.
$1485.00

C.
$1704.79

D.
$2475.00

Answer 1

Are we assuming no payments have been made in those 6 years?

Answer 2

if that is the case the compounded interest is:
\[4500(1.055)^6 - 4500\]

Answer 3

So C?

Answer 4

yep