Raymond bought a car for $40, 000. He took a $20,000 loan from a bank at an interest rate of 15% per year for a 3-year period. W

Question

2 years ago

5

hat is the total amount (interest and loan) that he would have to pay the bank at the end of 3 years?.

1 answer:

exis [7] · Answer 1 · 2022-08-29T13:58:08+03:00

Answer:

20000*(1+15%)³=30417.5

Explanation:

The number $40000 is irrelevant. Don't be disturbed!

This is a typical compound interest question. Use the compound interest formula: S=p(1+<em>i)ⁿ</em>

S for sum, p for principal balance, <em>i </em>for interest rate, n for the number of years or times