Problema Solution

Suppose that $2000 is loaned at a rate of 9% , compounded monthly. Assuming that no payments are made, find the amount owed after 7 years.

Do not round any intermediate computations, and round your answer to the nearest cent.

Answer provided by our tutors

P = 2000

r =9% = 9/1200 = 0.0075

n = 7*12 = 84

 

so amount after 7 years = $3,746.40