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Determine the amount to be paid back after three years on a $3,000 credit card loan with an interest rate of 15% compounded daily.

User Viswanath
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1 Answer

4 votes

Final answer:

The amount to be paid back after three years on a $3,000 credit card loan with a 15% interest rate compounded daily is $3,003.70.

Step-by-step explanation:

To determine the amount to be paid back after three years on a $3,000 credit card loan with an interest rate of 15% compounded daily, we can use the formula for compound interest:

Final Amount = Principal * (1 + (Rate / 365))^n

Final Amount = $3,000 * (1 + (0.15 / 365))^3

Final Amount = $3,000 * (1 + 0.00041095890410958904)^3

Final Amount = $3,000 * 1.0012335197745937

Final Amount = $3,003.70

Therefore, the amount to be paid back after three years on a $3,000 credit card loan with a 15% interest rate compounded daily is $3,003.70.

User Acylam
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