Question

Isobel takes out a loan of £80,000. It gains compound interest at a rate of 6% per year and she pays it back after 3 years. Copy and complete the expression below for the amount of money that Isobel must pay back.

£80,000 x ...³

Answer 1

To find the amount of money that Isobel must pay back after 3 years with compound interest on a loan of £80,000, use the formula: Principal Amount x (1 + Interest Rate)^Number of years.

Step-by-step explanation:

To find the amount of money that Isobel must pay back after 3 years with compound interest, we can use the formula:

Principal Amount x (1 + Interest Rate)^Number of years

Plugging in the values given in the question, we have:

£80,000 x (1 + 0.06)^3

Calculating this expression will give us the total amount that Isobel must pay back.