If you borrowed $15000 to buy a new car at 6 % interest per year, compounded annually, and paid back the principal and interest at the end of 8 years, how much would you pay back

Question

If you borrowed $15000  to buy a new car at 6 % interest per year, compounded annually, and paid back the principal and interest at the end of   8  years, how much would you pay back

anonymous · Answer

do you know the formula for compound interest?

anonymous · Answer

is it A= P(1+r/n)^nt?

anonymous · Answer

and how many times is it compounded per year?

anonymous · Answer

annually so wouldnt that be once

idily101 · Answer

how many compounds per year then?

anonymous · Answer

ok so n = 1 r = 6% = 0.06, P =15000 , t = 8 years
All you need to do is substitute these values in the equation above to get the total after 8 years.

anonymous · Answer

ok thanks ill try it out

anonymous · Answer

great!

anonymous · Answer

i got 23907.72

anonymous · Answer

nice!