Question

Paige borrows $4000 at an interest rate of 12% per year what is the amount due at the end of 3 years

Answer 1

For this case we have an equation of the form:

$y = A * (b) ^ x$

Where,

A: initial loan

b: interest rate

x: number of years

Substituting values we have that the function that models the problem is:

$y = 4000 * (1.12) ^ x$

By the end of the third year we have:

$y = 4000 * (1.12) ^ 3\\y = 5619,712$

Answer:

the amount due at the end of 3 years is:

$y = 5619,712$