Question

You owe $10,000 on a car loan. The bank charges a compound interest rate of 9.5% per year. If you don't make any payments on the loan, how much will you owe after 3 years? Round your answer to the nearest whole cent.

Answer 1

ya

compound interest
A=P(1+r)^t
A=amount final
P=principal
r=rate in decimal
t=time in yers

so

interest is 9.5% or 0.095
principal is 10000
time is 3 years
A=10000(1+0.095)^3
A=10000(1.095)^3
A=13129.323
rounded
he owes $13129.32