Solve the problem.
-A woman borrowed $10,000 at 2% interest compounded annually. If the loan was paid off in one lump sum at the end of 5 years, how much did she pay?
A) $11,000.00
B) $1040.81
C) $11,040.81
D) $10,200.00

Question

Quizplus · Accepted Answer

The amount paid after 5 years with compound interest is calculated using the formula A = P(1 + r)^n, where A is the amount, P is the principal amount ($10,000), r is the annual interest rate (2% or 0.02), and n is the number of years (5). Plugging in the values, A = 10000(1 + 0.02)^5 = $11,040.81.

Solve the Problem. -A Woman Borrowed $10,000 at 2% Interest Compounded Annually. If