Answer:
Total amount to be paid back = $29971
Step-by-step explanation:
Formula used to calculate the final amount of the loan to be paid,
Total amount to be paid = ![P(1+\frac{r}{n})^{nt}](https://tex.z-dn.net/?f=P%281%2B%5Cfrac%7Br%7D%7Bn%7D%29%5E%7Bnt%7D)
Where P = Principal amount of loan taken
r = rate of interest
n = Number of compounding in a year
t = duration of investment
By substituting the values in the formula,
Total amount to be paid after loan maturity = ![18000(1+\frac{0.04}{1})^{13\times 1}](https://tex.z-dn.net/?f=18000%281%2B%5Cfrac%7B0.04%7D%7B1%7D%29%5E%7B13%5Ctimes%201%7D)
= ![18000(1.04)^{13}](https://tex.z-dn.net/?f=18000%281.04%29%5E%7B13%7D)
= 18000(1.66507)
= $29971.32
≈ $29971
Total amount to be paid after loan maturity will be $29971.