what is ask, you take out a P20,000 loan at 5% interest rate. If the interest is compounded annually, (a)give an exponential model for the situation, and (b) how much will you owe after 10 years?
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Step-by-step explanation:
a.
A = P ( 1 + r/n)^nt
A is the future value of the investment/loan, including interest
P is initial amount
r is interest rate
n is the number of times interest is compounded per time period
t is the number of time periods.
b.
A = P ( 1 + r/n)^nt
A = 20000 ( 1 + 0.05/12)^(12*10)
A = 32940.18995
Answer:
b.how much will you owe after 10 years