Algebra 2 Compound Interest

Question

0

2007

1

You borrowed $59000 for 2 years at 11% which was compounded annually. What total will you pay back?

Guest Oct 2, 2013

Melody · Answer 1 · 2013-10-02T01:03:44

After one year you will owe

$59000 * 1.1 After 2 years you will owe$ 59000 * 1.1 * 1.1

or using the formula

S = P * (1+i) ^ n
S = 59000 * 1.11 ^ 2
S = 72,693.90