Natalie's family want to go on holiday to Hawaii. To pay for the expenses, Natalie takes out a loan of 10000. If the bank charges interest at a compounding rate of 19% p.a., calculate the total amount that Natalie owes after 33 years.

Lösung

N a t a l i e^{'} s f ami l y w an t t o g o o n h o l i d a y t o H a w aii . T o p a y f or t h e e x p e n ses, N a t a l i e t ak es o u t a l o an o f 10000. I f t h e bank c ha r g es in t eres t a t a co m p o u n d in g r a t e o f 19% p . a ., c a l c u l a t e t h e t o t a l am o u n t t ha t N a t a l i e o w es a f t er 33 ye a rs .

Amount : 3112072.64

Schritte zur Lösung

Translate the problem into an equation:

A = 10000 (1 + \frac{0.19}{1})^{1 \cdot 33}

10000 (1 + \frac{0.19}{1})^{1 \cdot 33} = 3112072.64354 \dots

Round to the nearest hundredth:

3112072.64

Amount : 3112072.64