Solve the problem.
-A woman borrowed $20,000 at 8% interest compounded annually. If the loan was paid off in one lump sum at the end of 4 years, how much did she pay?
A) $21,600.00
B) $27,209.78
C) $7209.78
D) $26,400.00

Question

Quizplus · Accepted Answer

The amount paid off in a compound interest scenario is calculated using the formula A = P(1 + r)^n, where A is the amount, P is the principal amount ($20,000), r is the annual interest rate (8% or 0.08), and n is the number of years (4). Plugging in these values gives A = 20000(1 + 0.08)^4 = $27,209.78.

Solve the Problem. -A Woman Borrowed $20,000 at 8% Interest Compounded Annually. If