A college student borrows $10,000 today at 10% interest compounded annually. Four years later, the student makes the first payment of $3000. Approximately how much money will the student still owe on the loan after the first payment

$11,700

Explanation:

Calculation for how much money will the student still owe on the loan after the first payment

Using this formula

A=P(1+r/n)^nt

Where,

P =represent the principal amount $10,000

r =represent annual nominal interest rate 10/100= 0.1

n =represent the number of times the interest is compounded per year 1

t= represent number of years 4

Let plug in the formula

A=$10,000(1+0.1/1)^(1)(4)

A=$10,000(1.1)^4

A=$14,641

Since the student makes the first payment of the amount of $3,000 the amount of money that the student still owe on the loan after the first payment will be :

Loan Amount =$14,641-$3,000

Loan Amount =$11,641

Approximately $11,700

Therefore how much money will the student still owe on the loan after the first payment will be $11,700

answer; test-retest;