To solve this problem, we will use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case, the loan is compounded annually, so n = 1. The principal amount P is $2000, the annual interest rate r is 13.5% or 0.135 in decimal form, and the time t is 9 years.

Substituting these values into the formula, we get:

A = 2000 (1 + 0.135/1)^(1*9)
A = 2000 (1.135)^9

Now, calculate the value inside the parentheses:

1.135^9 = 3.39107

Then multiply this by the principal amount:

A = 2000 * 3.39107 = $6782.14

So, the amount owed after 9 years would be approximately $6782.14.

Question

To solve this problem, we will use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case, the loan is compounded annually, so n = 1. The principal amount P is $2000, the annual interest rate r is 13.5% or 0.135 in decimal form, and the time t is 9 years.

Substituting these values into the formula, we get:

A = 2000 (1 + 0.135/1)^(1*9)
A = 2000 (1.135)^9

Now, calculate the value inside the parentheses:

1.135^9 = 3.39107

Then multiply this by the principal amount:

A = 2000 * 3.39107 = $6782.14

So, the amount owed after 9 years would be approximately $6782.14.

Knowee AI · Accepted Answer

To solve this problem, we will use the formula for compound interest, which is:

A = P (1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years

In this case, the loan is compounded annually, so n = 1. The principal amount P is $2000, the annual interest rate r is 13.5% or 0.135 in decimal form, and the time t is 9 years.

Substituting these values into the formula, we get:

A = 2000 (1 + 0.135/1)^(1*9)
A = 2000 (1.135)^9

Now, calculate the value inside the parentheses:

1.135^9 = 3.39107

Then multiply this by the principal amount:

A = 2000 * 3.39107 = $6782.14

So, the amount owed after 9 years would be approximately $6782.14.

Suppose that $2000 is loaned at a rate of 13.5%, compounded annually. Assuming that no payments are made, find the amount owed after 9 years.Do not round any intermediate computations, and round your answer to the nearest cent.$

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