Answer:
A = 10,000(1 + 0.0425)^5
Step-by-step explanation:
The formula for calculating annually compounded interest is:
[tex]A= N(1+r)^t[/tex]
Where A is the final loan amount; N is the initial amount loaned, in dollars; r is the annual interest rate and t is the length of the loan, in years.
In this loan, the initial amount is 10,000, the interest rate is 0.0425 and the length of the loan is 5 years. Therefore, the expression that describes the loan is:
[tex]A = 10,000(1+0.0425)^5[/tex]
