Question

Financial Math Problem - HELP! Will reward

Answer 1

An amount of
$26,000
is borrowed for
6
years at
6.5%
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.

Answer 2

This is how it starts to add up, compounded:

Y0: $26,000
end Y1: $26,000(1 + 6.5%)
end Y2: $26,000(1 + 6.5%)(1 + 6.5%)
end Y3: $26,000(1 + 6.5%)(1 + 6.5%)(1 + 6.5%)
etc etc


follow that patten, answer your question.