QuestionJuly 16, 2025

Alan borrowed 8000 at a rate of 15% compounded annually. Assuming he makes no payments, how much will he owe after 9 years? Do not round any intermediate computations, and round your answer to the nearest cent. Ssquare

Alan borrowed 8000 at a rate of 15% compounded annually. Assuming he makes no payments, how much will he owe after 9 years? Do not round any intermediate computations, and round your answer to the nearest cent. Ssquare
Alan borrowed 8000 at a rate of 15%  compounded annually. Assuming he makes no payments, how much will he owe after 9 years?
Do not round any intermediate computations, and round your answer to the nearest cent.
Ssquare

Solution
4.3(160 votes)

Answer

\ 27386.72 Explanation 1. Identify the formula for compound interest Use the formula A = P(1 + r)^n where A is the amount after time, P is the principal, r is the annual interest rate, and n is the number of years. 2. Substitute values into the formula P = 8000, r = 0.15, n = 9. Calculate A = 8000(1 + 0.15)^9. 3. Compute the expression Calculate (1 + 0.15)^9 first, then multiply by 8000.

Explanation

1. Identify the formula for compound interest<br /> Use the formula $A = P(1 + r)^n$ where $A$ is the amount after time, $P$ is the principal, $r$ is the annual interest rate, and $n$ is the number of years.<br />2. Substitute values into the formula<br /> $P = 8000$, $r = 0.15$, $n = 9$. Calculate $A = 8000(1 + 0.15)^9$.<br />3. Compute the expression<br /> Calculate $(1 + 0.15)^9$ first, then multiply by $8000$.
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