Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual compound interest rate of 10%. The loan compounds once each year. When you calculate Bruce's debt, be sure to use the formula for annual compound interest. A = P (1+StartFraction r Over n EndFraction)nt Bruce borrowed $1,000 for his trip. If Bruce waits for five years to begin paying back his loan, how much will he owe? $1,251.10 $1,310.21 $1,610.51 $1,810.71

Answer: He will owe $1610.51 .

Step-by-step explanation:

Given: Loan amount (P)= $1,000

Rate of interest (r) = 10% = 0.10

Number of years (t)= 5 years

n= 1 (will pay once in a year)

Formula: [tex]A= P(1+\dfrac{r}{n})^{nt}[/tex]

[tex]A=1000(1+0.10)^5[/tex]

[tex]=1000(1.10)^5\\\\=1000(1.61051)\\\\ =1610.51[/tex]

Hence, He will owe $1610.51 .

Answer:

1610.51 $

Step-by-step explanation:

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