Question
Calculate amount paid back after 3 yrs on $3000 credit card loan with interest rate 15% compounded yearly
Answers
GPT-4o mini
To calculate the amount paid back after 3 years on a credit card loan of $3000 with an interest rate of 15% compounded yearly, we can use the formula for compound interest:
\[
A = P (1 + r)^t
\]
Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount (the initial amount of money).
- \( r \) is the annual interest rate (decimal).
- \( t \) is the number of years the money is invested or borrowed.
In this case:
- \( P = 3000 \)
- \( r = 15\% = 0.15 \)
- \( t = 3 \)
Substituting the values into the formula:
\[
A = 3000 (1 + 0.15)^3
\]
\[
A = 3000 (1.15)^3
\]
\[
A = 3000 \times 1.520875
\]
\[
A \approx 4562.63
\]
Therefore, the total amount paid back after 3 years is approximately \( \text{\$4562.63} \).
\[
A = P (1 + r)^t
\]
Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount (the initial amount of money).
- \( r \) is the annual interest rate (decimal).
- \( t \) is the number of years the money is invested or borrowed.
In this case:
- \( P = 3000 \)
- \( r = 15\% = 0.15 \)
- \( t = 3 \)
Substituting the values into the formula:
\[
A = 3000 (1 + 0.15)^3
\]
\[
A = 3000 (1.15)^3
\]
\[
A = 3000 \times 1.520875
\]
\[
A \approx 4562.63
\]
Therefore, the total amount paid back after 3 years is approximately \( \text{\$4562.63} \).