WileyPLUSH MywIleyPLUST HelpT Contact us Log out Kimmel, Financial Accounting, 8

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WileyPLUSH MywIleyPLUST HelpT Contact us Log out Kimmel, Financial Accounting, 8e FINANCIAL ACCOUNTING (200) ctice Assignment Gradebook ORION Downloadable eTextbook ment CALCULATORILFULL SCREENIPRINTER VERSION BACK NEXT Brief Exercise G-6 Hugh Curtin borrowed $30,700 on July 1, 2017. This amount plus accrued interest at 12% compounded annually is to be repaid on July 1, 2022. Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided) How much will Hugh have to repay on July 1, 2022? (Round answer to 2 decimal places, e.g. 25.25.) Amount to be repaid on July 1, 2022 LINK TO TEXT Question Attempts: o of 2 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

There are 5 years from 2017 to 2022.

Loan amount = P = $30,700

Rate of interest = r = 0.12

Repaying amount = A

Number of years = n = 5

A = P (1 + r) ^n

    = 30,700 (1 + 0.12) ^5

    = 30,700 × 1.76234

    = 54,103.84 (rounded to 2 decimal places)

Answer: The required amount is $54,103.84.

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