Answer:
Step-by-step explanation:
To calculate the total amount you will pay back on a loan, you can use the formula for compound interest. The formula for compound interest is:
\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \]
Where:
- \(A\) is the total amount paid back.
- \(P\) is the principal amount (initial loan amount).
- \(r\) is the annual interest rate (as a decimal).
- \(n\) is the number of times that interest is compounded per year.
- \(t\) is the time the money is invested or borrowed for, in years.
In your case:
- \(P = $2300\),
- \(r = 0.06\) (6% as a decimal),
- \(n\) is not specified, so let's assume interest is compounded annually (\(n = 1\)),
- \(t = 9\) years.
Plug in these values into the formula:
\[ A = 2300 \left(1 + \frac{0.06}{1}\right)^{1 \times 9} \]
Calculate the expression in parentheses first:
\[ 1 + \frac{0.06}{1} = 1.06 \]
Now, substitute this value into the formula:
\[ A = 2300 \times (1.06)^9 \]
Calculate the result to find the total amount you will pay back.
