Question

Please help me in Math.

Answer 1

An amount of $50,000 is borrowed for 13 years at 7% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back?

Answer 2

I believe I should multiply 7% by 13 right?

Answer 3

Hey just a tip for you vocaloid and blackghost are really helpful in meth and welcome to qc

Answer 4

math sorry for the typo

Answer 5

total amount to be paid back is A

P is the initial loan amount (50,000), time is 13 years, interest is 7% (convert this to a decimal, 0.07), n = 1 since we're only compounding once per year

calculate A

Answer 6

So... 13 * 0.07?

Answer 7

please look at the formula I have posted and plug in the appropriate values

Answer 8

A = 50,000(1 + 7/13) ^13

Answer 9

Is that correct?

Answer 10

n is 1, r is 0.07

A = 50,000(1 + 0.07) ^13 = ?

Answer 11

I can't figure it out... i'm sorry

Answer 12

you just need to plug in 50,000(1 + 0.07) ^13 into a calculator

Answer 13

I'm trying to... but it just gives me 0

Answer 14

1 + 0.07 first

then raise it to the power of 13

then multiply it by 50,000

Answer 15

Ah... let's try that

Answer 16

1 + 0.07 = 1.07

Answer 17

1.07^13 = 2.41

Answer 18

Is the answer 120.5?

Answer 19

2.41 * 50,000 = ?

Answer 20

Hmm I was using a math calculator online... let me use the one that comes with my iPhone

Answer 21

I got 120,500

Answer 22

good, since you rounded 1.07^13 to 2.41 you end up with $120,500, but if we leave (1.07)^13 * 50,000 unrounded until the end, we get $120492.25 which is a bit more accurate, so I'd go with $120492.25

Answer 23

Thank you so much :)