An amount of $28,000is borrowed for 14years at 4.75% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?
Use the calculator provided and round your answer to the nearest dollar.

Question

An amount of $28,000is borrowed for 14years at 4.75% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?
Use the calculator provided and round your answer to the nearest dollar.

anonymous · Answer

A = P(1 + r/n)^(nt)

anonymous · Answer

Plug in the numbers:
A = 28,000 * (1.003393)^(14)

anonymous · Answer

A = $29,359.73
(approximately)

anonymous · Answer

im confused how can it be more than original cost? it told me the answer was incorrect but thank you for your help!