an amount of $40,000 is borrowed for 9 years at 7.25% interest, compounded annually. assuming that no…

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal

Given $r = 7.25%=0.0725$, $P=$40000$, and $t = 9$ years.

Step3: Substitute values into the formula

$A=40000\times(1 + 0.0725)^9$.

Step4: Calculate the value inside the parentheses

$1+0.0725 = 1.0725$.

Step5: Calculate the power

$(1.0725)^9\approx1.84877$.

Step6: Multiply by the principal

$A = 40000\times1.84877=73950.8$.

Answer:

$73951$