Solve the problem.
-A man borrowed $2000 at 2.5% interest compounded annually. If he paid off the loan in full at the end of 6 years, how much did he pay?
A) $2050.00
B) $2300.00
C) $319.39
D) $2319.39

Question

Quizplus · Accepted Answer

The amount paid after 6 years with compound interest is calculated using the formula A = P(1 + r)^n, where A is the amount, P is the principal amount ($2000), r is the annual interest rate (2.5% or 0.025), and n is the number of years (6). Plugging in the values, A = 2000(1 + 0.025)^6 = $2319.39.

Solve the Problem. -A Man Borrowed $2000 at 2.5% Interest Compounded Annually. If