Question

Purchased a living room set for $3,800 at 11% add on interest for 3 years , whats the nearest tenth of a percent for the loan described ?

Answer 1

Answer:

The loan amount after 3 years is $ 5,196.88

Step-by-step explanation:

Given as :

The principal amount for room loan = $ 3,800

The rate of interest applied = 11% compounded annually

The time period of loan = 3 years

Let The Total loan amount = $ A

Now, From Compounded method :

Amount = Principal × $(1+\dfrac{\textrm rate}{100})^{\textrm time}$

or, A = $ 3,800 × $(1+\dfrac{\textrm 11}{100})^{\textrm 3}$

or, A = $ 3,800 × (1.11)³

or,  A = $ 3,800 × 1.3676

∴ A = $ 5,196.88

So, Amount after 3 years = A = $ 5,196.88

Hence The loan amount after 3 years is $ 5,196.88 Answer