Jaime sells a bond to the Iron Bank of Braavos for 17,000 golden crowns at an interest rate of 20%. Fifteen years later, the bank demands repayment in full. Since Jaime has never paid any interest,
Question:
Jaime sells a bond to the Iron Bank of Braavos for 17,000 golden crowns at an interest rate of 20%. Fifteen years later, the bank demands repayment in full. Since Jaime has never paid any interest, how much does Jaime owe?
Answers (1)
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Answers (1)
JosephineApril 2, 2023 в 05:04
Jaime owes 68,000 golden crowns.
This can be calculated using the formula for compound interest:
A = P(1 + r/n)^(n*t)
where A is the final amount, P is the initial principal, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
In this case, P = 17,000, r = 0.20, n = 1 (compounded annually), and t = 15.
Plugging in the values, we get:
A = 17,000(1 + 0.20/1)^(1*15)
A = 17,000(1.20)^15
A = 68,024.07
Since we're dealing with a currency system that uses golden crowns, we round down to 68,000 golden crowns.
Therefore, Jaime owes 68,000 golden crowns to the Iron Bank of Braavos.
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