Question
Calculate the amount to be paid back after three years on a $3,000 credit card loan with an interest rate of 15% compounded yearly.
267572.61
4562.63
3138.08
4271.48
267572.61
4562.63
3138.08
4271.48
Answers
GPT 3.5
To calculate the amount to be paid back after three years, we use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = the amount to be paid back after t years
P = the principal amount (initial loan amount)
r = the annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal amount is $3,000, the annual interest rate is 15% (or 0.15 as a decimal), interest is compounded yearly (n = 1), and the number of years is 3 (t = 3).
Using the formula:
A = 3000(1 + 0.15/1)^(1*3)
A = 3000(1 + 0.15)^3
A = 3000(1.15)^3
A = 3000(1.518375)
A ≈ 4555.13
Therefore, the amount to be paid back after three years on a $3,000 credit card loan with an interest rate of 15% compounded yearly is approximately $4,555.13.
None of the given answer choices match this result exactly.
A = P(1 + r/n)^(n*t)
Where:
A = the amount to be paid back after t years
P = the principal amount (initial loan amount)
r = the annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal amount is $3,000, the annual interest rate is 15% (or 0.15 as a decimal), interest is compounded yearly (n = 1), and the number of years is 3 (t = 3).
Using the formula:
A = 3000(1 + 0.15/1)^(1*3)
A = 3000(1 + 0.15)^3
A = 3000(1.15)^3
A = 3000(1.518375)
A ≈ 4555.13
Therefore, the amount to be paid back after three years on a $3,000 credit card loan with an interest rate of 15% compounded yearly is approximately $4,555.13.
None of the given answer choices match this result exactly.