An amount of $18,000 is borrowed for 9 years at 5.5% interest, compounded annually. Assuming that no payments are made, find the amount owed after 9 years.
Question
Solution 1
To solve this problem, we will use the formula for compound interest, which is:
A = P (1 + r/n)^(nt)
Where: A = the amount of money accumulated after n years, including interest. P = the principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that i Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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