A loan of $35,000 is made at 4.25% interest, compounded annually. after how many years will the amount due reach $57,000 or more? (use the calculator provided if necessary.)

Question

Maldonado

Business

27 December, 15:36

A loan of $35,000 is made at 4.25% interest, compounded annually. after how many years will the amount due reach $57,000 or more? (use the calculator provided if necessary.)

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Answers (1)

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Dominique Morgan · Answer 1

A = P (1+r/100) ^n

Using this formula for compound interest,

where A is total amount,

P is the principal amount,

R is the interest rate and

n is the number of periods the amount is compounded

Let A be 57000, P be 35000 and r be 4.25

and solve the qn