Alisha has a five-year car loan of $15,000 with an interest rate of 6 percent. If the interest is compounded annually, how much will she pay in total for her car?

Question

anonymous · Answer

do you have the formula for loan payments?

anonymous · Answer

yes its
total amount=P(1+i)^t

anonymous · Answer

oh NO not again
no no no this is not the formula for a loan payment
this is compound interest formula
if you invest $\$15,000$ at $6\%$ annually, at the end of $5$ years you will have 
$$15,000\times (1.06)^5$$ dollars
but that has nothing to do with paying a loan!  that is compound interest

anonymous · Answer

tell your really not smart teacher that investing at a certain rate of interest is not at all the same as making a loan payment
they are confused, and should be teaching shop

anonymous · Answer

so will it be 15,900.50

anonymous · Answer

i can give you the actual answer if you like, but i think the answer you are looking for is 
$$15,000(1.06)^5$$ which is about $\$20,073$

anonymous · Answer

http://www.wolframalpha.com/input/?i=15000%281.06%29^5

anonymous · Answer

ok thanks i kinda get it now

anonymous · Answer

please please tell your math teacher that this in NOT RIGHT at all, so no, you don't get it and neither does your math teacher get it
this is a really bad mistake on your teacher's part
not your fault of course, but not right just the same

anonymous · Answer

ok i will

anonymous · Answer

the actual formula for loan payments is the LAST one on the attached formula sheet
show it to your teacher, (or don't if you don't want to cause trouble) and let them know that you do not pay off a loan by calculating how much you would get if you invested the money
that is just plain wrong, and frankly not very smart

anonymous · Answer

i need help on this one too
Ryan has an eight-year loan for $6,000. He is being charged an interest rate of 5 percent, compounded annually. Calculate the total amount that he will pay.