Question

Mr. Smith borrowed $50,000 from a bank at an interest rate of *x*% that compounds *y* times per year. What is the amount, *A*, that Mr. Smith finally pays after the *z* year term of the loan?

Accepted Answer

$$A = 50,000 \left (\frac{100y + x}{100y}\right)^{yz}$$

Answer

$$A = 50000 \left (1 + \frac{x}{y}\right)^{yz}$$

Answer

$$A = 50000 (1 + x)^{yz}$$

Answer

$$A = 50000 \left (1 + \frac{z}{x}\right)^{xz}$$

Question 21 - Math: No Calculator Practice Test for the SAT Exam