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

$8259.16$

Steps

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

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 ： $8259.16$