Answer:
463.71 (2dp)
Explanation:
If we have multiple % changes we can multiply all multipliers togethers to find the overall change.
find the percentage multiplier of 3% (since you are adding and not taking away 3%, the percentage multiplier must be over 1.)
percentage multiplier: 1.03
We are borrowing money for 5 years, therefore:
1.03 x 1.03 x 1.03 x 1.03 x 1.03 will get you the overall percentage change.
1.03^5 in short
so 400 * 1.03^5 will get you the total amount of money you will need to pay back.