Question

Purchased a living room set for $3,800 at 11% add on interest for 3 years , whats the nearest tenth of a percent for the loan described ?

Answer 1

The loan amount after 3 years is $ 5,196.88

Explanation:

Given as :

The principal amount for room loan = $ 3,800

The rate of interest applied = 11% compounded annually

The time period of loan = 3 years

Let The Total loan amount = $ A

Now, From Compounded method :

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

or, A = $ 3,800 ×
`(1+(\textrm 11)/(100))^(\textrm 3)`

or, A = $ 3,800 × (1.11)³

or, A = $ 3,800 × 1.3676

∴ A = $ 5,196.88

So, Amount after 3 years = A = $ 5,196.88

Hence The loan amount after 3 years is $ 5,196.88 Answer