Question

Alisha has a $15,000 car loan with a 6 percent interest rate that is compounded annually. How much will she have paid at the end of the five-year loan term?

Answer 1

6 percent intrest per year for 5 years I think is the same as 30 percent for 5 years

so $15,000 x .3 is $4500

$15,000 + $4500 = $19,500

not 100 percent sure if this is correct but I think its right. Sorry if im wrong.

Answer 2

A=p(1+i)^t
A=15000(1.06)^5=20,073.38