Question
Suppose you borrow money for 6 months If the interest rate is compounded monthly, the formula $A=P\left(1+\frac{r}{12}\right)^{6}$ gives the total amount $A$ to be repaid at the end of 6 months. For a loan of $P=\$ 1000$ and interest rate of $9 \%(r=0.09)$ how much money will you need to pay off the loan?
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We know that the principal amount, $P$, is $1000, the interest rate, $r$, is $0.09$, and the time, $t$, is $6$ months. Show more…
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