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.
267572.61
4562.63
3138.08
4271.48
To calculate the amount to be paid back after three years, we use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = the amount to be paid back after t years
P = the principal amount (initial loan amount)
r = the annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal amount is $3,000, the annual interest rate is 15% (or 0.15 as a decimal), interest is compounded yearly (n = 1), and the number of years is 3 (t = 3).
Using the formula:
A = 3000(1 + 0.15/1)^(1*3)
A = 3000(1 + 0.15)^3
A = 3000(1.15)^3
A = 3000(1.518375)
A ≈ 4555.13
Therefore, the amount to be paid back after three years on a $3,000 credit card loan with an interest rate of 15% compounded yearly is approximately $4,555.13.
None of the given answer choices match this result exactly.