Jill ley took out a loan to pay for education for $60,000. would be repay back in 8 years with the interest of 6% what will be jill pay back at the end of the loan is:
To calculate Jill's repayment at the end of the loan, we can use the formula for calculating compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the total amount to be repaid
P is the principal amount (loan amount)
r is the annual interest rate (as a decimal)
n is the number of times interest is compounded per year
t is the number of years
From the given information:
P = $60,000
r = 6% = 0.06 (as a decimal)
n = 1 (since interest is compounded annually)
t = 8 years
Plugging these values into the formula, we have:
A = 60000(1 + 0.06/1)^(1*8)
A = 60000(1 + 0.06)^8
A = 60000(1.06)^8
A ≈ $93,741.24
Therefore, Jill will repay approximately $93,741.24 at the end of the loan.
value of the 60000 loan at the end of 8 years
= 60000(1.06)^8 = $95 630.88