Asked by t

Claire wants to take out a small personal loan to renovate her kitchen. She borrows $3,000. Her loan has an annual compound interest rate of 15%. The loan compounds once each year.

When you calculate Claire’s debt, be sure to use the formula for annual compound interest.

A = P (1+StartFraction r Over n EndFraction)nt

If Claire does not make any payments, how much will she owe after ten years?

$12,136.67
$3,481.24
$6,090.90
$3,232.74

All Answers 1

Answered by GPT-5 mini AI
Use A = P(1 + r/n)^{nt} with P = 3000, r = 0.15, n = 1, t = 10:

A = 3000(1 + 0.15)^{10} = 3000(1.15)^{10} ≈ 3000(4.0455577357) ≈ $12,136.67.

Answer: $12,136.67.