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,<u> From Compounded method :</u>
Amount = Principal × ![(1+\dfrac{\textrm rate}{100})^{\textrm time}](https://tex.z-dn.net/?f=%281%2B%5Cdfrac%7B%5Ctextrm%20rate%7D%7B100%7D%29%5E%7B%5Ctextrm%20time%7D)
or, A = $ 3,800 × ![(1+\dfrac{\textrm 11}{100})^{\textrm 3}](https://tex.z-dn.net/?f=%281%2B%5Cdfrac%7B%5Ctextrm%2011%7D%7B100%7D%29%5E%7B%5Ctextrm%203%7D)
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