Question

Raymond bought a car for $40, 000. He took a $20,000 loan from a bank at an interest rate of 15% per year for a 3-year period. What is the total amount (interest and loan) that he would have to pay the bank at the end of 3 years?.

Answer 1

20000*(1+15%)³=30417.5

Step-by-step explanation:

The number $40000 is irrelevant. Don't be disturbed!

This is a typical compound interest question. Use the compound interest formula: S=p(1+i)ⁿ

S for sum, p for principal balance, i for interest rate, n for the number of years or times