Question

Total amount = P (1 + i)t Alisha has a five–year car loan of $15,000 with an interest rate of 6 percent. If the interest is compounded annually, how much will she pay in total for her car?

Answer 1

$20070

Explanation:

Given data

Time= 5 years

Principal= $15,000

Rate= 6%

Total amount= P (1 + i)^t

substitute

Total amount= 15000(1 + 0.06)^5

Total amount= 15000 (1.06)^5

Total amount= 15000*1.338

Total amount= $20070

Hence the total amount will be $20070