## Basic College Mathematics (10th Edition)

(a) To find the compound amount without using the table, multiply the principal amount by 1.05 (105%) four times (once for each year of the loan term). $c=148000\times1.05\times1.05\times1.05\times1.05$= $155,400\times1.05\times1.05\times1.05$= $163,170\times1.05\times1.05$= $171,328.50\times1.05=179,894.93$ (b) The interest owed is the difference between the compound amount and the principal. $179,894.93-148,000=31,894.93$