Suppose that 52000 is loaned at a rate of 15%, compounded monthly. Assuming that no payments are made, find the amount owed after 8 years Do not round any intermediate computations, and round your answer to the nearest cent.

pramrok62

pramrok62

Answered question

2022-09-09

Suppose that 52000 is loaned at a rate of 15%, compounded monthly. Assuming that no payments are made, find the amount owed after 8 years Do not round any intermediate computations, and round your answer to the nearest cent.

Answer & Explanation

Alvin Preston

Alvin Preston

Beginner2022-09-10Added 9 answers

Given, compounded monthly n=12
Principal amount, P=$2000
r=15%
t=8 years
Future value is A(t)
A ( t ) = 2000 ( 1 + 0.15 12 ) 12 × 8 A ( 8 ) = 2000 ( 1.0125 ) 96 = 2000 ( 3.29551322425 ) = 6591.026485
The amount owed after 8 years is $6591.03
=$6591

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