To calculate the amount to pay back after three years on a 3000 credit card loan with a compound interest rate of 15% per year, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount to pay back
P = the principal amount (initial loan amount)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
In this case, the principal amount is $3000, the annual interest rate is 15% (or 0.15 as a decimal), the compounding is yearly (n = 1), and we need to calculate the amount after three years (t = 3).
Plugging these values into the formula:
A = 3000(1 + 0.15/1)^(1*3)
A = 3000(1 + 0.15)^3
A = 3000(1.15)^3
A = 3000(1.520875)
A = $4,562.62
Therefore, the amount to pay back after three years on a $3000 credit card loan with a 15% compound interest rate would be $4,562.62.
Calculate the amount to pay back after three years on a 3000 credit card loan with an interest rate of 15% compound yearly
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