Question

Alisha has a $15,000 car loan with a 6 percent interest rate that is compounded annually. How much will she have paid at the end of the five-year loan term?

total amount = P (1 + i)t



$19,500.25



$15,900.50



$20,073.50

Answer 1

It is $15,900.50 because it says 15,000 car loan with a 6 percent rate.

Answer 2

Option 3 - $20,073.50

Explanation:

Given : Alisha has a $15,000 car loan with a 6 percent interest rate that is compounded annually.

To find : How much will she have paid at the end of the five-year loan term?

Solution :

The formula used to find the amount is
`A=P(1+i)^t`

Where, P is the principal P=$15000

r is the rate r=6%

i = 0.06

t is the time t=5 year

Substitute the value in the formula,

`A=15000(1+0.06)^5`

`A=15000(1.06)^5`

`A=15000(1.338)`

`A=20073.38`

Therefore, The total amount she paid is $20073.38.

So, Option 3 is correct.