Assume 20,000 is borrowed for 14 years at 8.5% interested compouinded annually

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03-05-2018
Mathematics

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Assume 20,000 is borrowed for 14 years at 8.5% interested compouinded annually

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TheBreeze TheBreeze · Answer 1 · 2018-05-08T01:13:15+02:00

TheBreeze TheBreeze

08-05-2018

To solve for one year:
20000 + 0.085(20000)
For 14 years:
20000 + 14(0.085(20000))
20000 + 1.19(20000)
To make it similar:
2.19(20000) = 43800
You now have 43800 dollars, and gained $23800

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