Finding a final amount in a word problem on exponential growt... An amount of $25,000 is borrowed for 15 years at 5.5% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be
paid back?

9514 1404 393

  $55,811.91

Step-by-step explanation:

The amount with interest is given by the formula ...

  A = P(1 +r)^t

where r is the annual interest rate and t is the number of years.

  A = $25000(1.055^15) ≈ $55,811.91

The amount due at the end of 15 years will be $55,811.91.

you need a common difference between consecutive terms to be constant, like 1,2,3,4 or 2,4,6,8, or 1,3,6,9