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sammy [17]
3 years ago
5

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

hat is the total amount (interest and loan) that he would have to pay the bank at the end of 3 years?.
SAT
1 answer:
exis [7]3 years ago
8 0

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

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