SOLUTION: If the interest rate on a $5,000 loan is 10%, what is the total amount due (principal and compound interest) at the end of the loan if the interest compounds annually for 3 years?

Algebra ->  Finance -> SOLUTION: If the interest rate on a $5,000 loan is 10%, what is the total amount due (principal and compound interest) at the end of the loan if the interest compounds annually for 3 years?       Log On


   

Question 1159248: If the interest rate on a $5,000 loan is 10%, what is the total amount due (principal and compound interest) at the end of the loan if the interest compounds annually for 3 years? (Round your answer to the nearest dollar.)
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
Amount+=%09P%2A%28%28n%2Br%29%2Fn%29%5E%28n%2At%29%09

Amount = = 5000 *( 1 + 0.1 )^ 1 * 3
Amount+=%095000%09%2A%28%091%09%2B%090.1%09%29%5E%093
5000 *( 1.1 )^ 3
Amount = 6655.00