Calculate the amount to be paid back after three years on a $3,000 credit card loan with an interest
rate of 15% compounded yearly.
To calculate the amount to be paid back after three years on a $3,000 credit card loan with an interest rate of 15% compounded yearly, we can use the compound interest formula:
A = P(1+r/n)^(nt)
Where:
A = the future amount or the amount to be paid back after three years
P = the principal amount (the initial loan amount) = $3,000
r = the interest rate per compounding period = 15% = 0.15
n = the number of compounding periods per year (since it is compounded yearly, n = 1)
t = the number of years = 3
Substituting the values into the formula:
A = $3,000(1+0.15/1)^(1*3)
A = $3,000(1+0.15)^3
A = $3,000(1.15)^3
A = $3,000(1.15)(1.15)(1.15)
A ≈ $3,000(1.520875)
A ≈ $4,562.62
Therefore, the amount to be paid back after three years on a $3,000 credit card loan with a 15% interest rate compounded yearly is approximately $4,562.62.