Rachel borrowed 8000 at a rate of 10.5%, compounded monthly. Assuming she makes no payments, how muc

Rachel borrowed 8000 at a rate of 10.5%, compounded monthly. Assuming she makes no payments, how much will she owe after 4 years?

Convert annual amounts to monthly
4 years = 12 * 4 = 48 months
i = .105/12 = 0.00875 monthly

Build our accumulation function A(t) where t is the time in months
A(48) = 8,000 * (1.00875)^48
A(48) = 8,000 * 1.5192
A(48) = 12,153.60

You can also use the balance calculator