Question

Noah borrowed $5000 from the credit union for 180 days. The interest rate is 11.4% per year. How much must Noah pay to the credit union after 180 days?

Answer 1

The amount that Noah pays to the credit union after 180 days will be $5143.85.

What is compound interest?

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

We know that the compound interest is given as

A = P(1 + r)ⁿ

Where A is the amount, P is the initial amount, r is the rate of interest, and n is the number of years.

We have

P = $5,000

r = 0.114 / 12 = 0.0095

n = 3

A = 5000(1 + 0.114)³

A = $5143.85

More about the compound interest link is given below.

https://brainly.com/question/25857212

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