What Is the Compound Amount at the End of a 3-Year

question 4

Essay

What is the compound amount at the end of a 3-year period on a loan with an original principal of $12,750 at 11% compounded annually? Round to the nearest cent after every calculation.

---

Definitions:

Novation

is the act of replacing one obligation with another by mutual agreement, effectively transferring the rights and duties of one party under a contract to another party.

Delegation

The process of assigning specific duties or authority from one person to another within an organization or group.

Liability

A legal obligation or debt that an entity is required to pay to another.