A woman borrowed $\$ 30,000$ at $12 \%$ interest compounded annually. If the loan was paid off at the end of 4 years, how much did she pay? Round your answer to the nearest cent.
A) $\$ 17,205.58$
B) $\$ 47,205.58$
C) $\$ 33,600.00$
D) $\$ 44,400.00$

Question

Quizplus · Accepted Answer

To calculate the total amount paid after 4 years with an annual interest rate of 12%, we use the formula for compound interest: A = P(1 + r)^n, where A is the amount, P is the principal amount (\$30,000), r is the annual interest rate (12% or 0.12), and n is the number of years (4). Plugging in the values, we get A = 30000(1 + 0.12)^4 ≈ \$47,205.58.

A Woman Borrowed $30,000\$ 30,000$30,000 At 12%12 \%12% Interest Compounded Annually $17,205.58\$ 17,205.58$17,205.58

A Woman Borrowed $\$ 30,000$ At $12 \%$ Interest Compounded Annually $\$ 17,205.58$