PLEASE HELP!! MEDAL!!
You owe $10,000 on a car loan. The bank charges a compound interest rate of 9.5% per year. If you don't make any payments on the loan, how much will you owe after 3 years? Round your answers to the nearest whole cent.
a.$14,376.61
b.$13,129.32
c.$11,990.25
d.$12,246.83

Question

PLEASE HELP!! MEDAL!!
You owe $10,000 on a car loan. The bank charges a compound interest rate of 9.5% per year. If you don't make any payments on the loan, how much will you owe after 3 years? Round your answers to the nearest whole cent.
a.$14,376.61
b.$13,129.32
c.$11,990.25
d.$12,246.83

amistre64 · Answer

compound the interest for 3 years ...

amistre64 · Answer

$$A=P(1+r/n)^{nt}$$

amistre64 · Answer

since loans are usually periodic monthly; n=12

clamin · Answer

i got B @amistre64

amistre64 · Answer

im getting 13282 or so, so yeah .. b seems the slosest bet

amistre64 · Answer

13129 assumes that there is only one payment made per year ...

amistre64 · Answer

not much of a difference tho in such a short time frame i spose