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math

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Chandra borrows some money at 7.2%/a compounded annually. After
5 years, she repays $12 033.52 for the principal and the interest. How much
money did Chandra borrow?

  • math -

    P = Po(1+r)^n.

    r = 7.2% / 100% = 0.072 = Annual % rate expressed as a decimal.

    n = iComp/yr * 5yrs = 5 Compounding
    periods.

    P = Po(1.072)^5 = 12,033.52
    1.41571Po = 12,033.52
    Po = $8500. = Amt. borrowed.

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