Solve the problem. Round your answer to the nearest cent.
-Kaitlyn borrowed $\$ 12,000$ from her mother to buy a car. She will repay the loan at the end of 6 years at $8 \%$ interest compounded annually. Find the amount she will repay.
A) $\$ 19,042.49$
B) $\$ 20,946.74$
C) $\$ 77,760.00$
D) $\$ 7042.49$

Question

Quizplus · Accepted Answer

The amount to be repaid can be calculated using the formula for compound interest: $A = P(1 + r)^n$, where $A$ is the amount, $P$ is the principal amount (\$12,000), $r$ is the annual interest rate (0.08), and $n$ is the number of years (6). Plugging in the values, we get $A = 12000(1 + 0.08)^6$, which calculates to approximately \$19,042.49.

Solve the Problem $12,000\$ 12,000$12,000 From Her Mother to Buy a Car

Solve the Problem $\$ 12,000$ From Her Mother to Buy a Car