As per the concept of compound interest, the amount to be paid at the end of the period is $81,094.99
Compound interest:
Basically, the interest associated with a bank account, loan, or investment increases exponentially—rather than linearly—over time is known as compound interest.
Given,
An amount of $48,000 is borrowed for 9 years at 6% interest, compounded annually.
Here we need to find if the loan is paid in full at the end of that period, how much must be paid.
While we looking into the given question we have identified the following,
Principal amount = $48,000
Time period = 9
Interest rate =- 6%.
Noe, first, convert R as a percent to r as a decimal
r = R/100
r = 6/100
r = 0.06 rate per year,
And then solve the equation for A
A = P(1 + r/n)ⁿˣ
A = 48,000.00(1 + 0.06/1)¹ˣ⁹
A = 48,000.00(1 + 0.06)⁹
A = $81,094.99
Therefore, the total amount accrued, principal plus interest, with compound interest on a principal of $48,000.00 at a rate of 6% per year compounded 1 times per year over 9 years is $81,094.99.
To know more about Compound interest here.
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