Answer:
Given that,
An amount of $23,000 is borrowed for 11 years at 6.75% interest, compounded annually.
To find the Amount paid back after 11 years.
Explanation:
we know that,
The formula to find the,
Amount after n years of interest rate r% compounded annually is,
[tex]A=P(1+\frac{r}{100})^n[/tex]where P is the initial amount.
Here, we have that,
P=$23,000
r=6.75
n=11
Substitute the values we get,
[tex]A=23000(1+\frac{6.75}{100})^{11}[/tex]Solving this we get,
[tex]A=23000(1+0.0675)^{11}[/tex][tex]A=23000(1.0675)^{11}[/tex][tex]A=23000(2.05138)[/tex][tex]A=47181.805[/tex]Round to the nearest dollar.
[tex]A=47181.805\approx47182[/tex]Answer is: Amount paid back is $47182 after 11 years
