Frank borrows $\$ 6,500$ at a rate of $4.8 \%$ compounded monthly. How much does he owe at the end of 5 years?
Round your answer to the nearest cent.

Answer

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Answer

$ \boxed{8259.16} $

Steps

Step 1 ：Use the compound interest formula $ A = P(1 + \frac{r}{n})^{nt} $

Step 2 ：Substitute the given values $ P = 6500 $, $ r = 0.048 $, $ n = 12 $, $ t = 5 $

Step 3 ：Calculate the amount owed $ A = 6500(1 + \frac{0.048}{12})^{12 \times 5} $

Step 4 ：Round the final answer to the nearest cent

Step 5 ：$ \boxed{8259.16} $