Aarav borrows $8 500 from his friend to pay for his upcoming trip. His friend charges Aarav interest at a rate of 1.75% compounded annually. 1. what is the equation that represents the amount that Aarav owes his friend each year.2. Aarav pays off the loan with one lump sum payment of $9 245.Algebraically determine how long, to the nearest tenth of a year, it took Aarav to pay his friend back.
a) $8500(1 + 0.0175)ⁿ = Amount owed each year
b) $8500(1 + 0.0175)ⁿ = $9245
c) Approximately 2.4 years
d) Approximately 3.1 years