Answered

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 answer to the nearest whole cent.

a.$13,129.32

b.$14,376.61

c.$12,246.83

d.$11,990.25

Verified Answer :

ThatGuy56

Since you pay 9.5% extra per year, that is equal to 109.5% of last year, or 1.095 in decimal form
The base equation:
y=kax
Sub in your values:
y=10000×1.0953
Simply solve for that
y=10000×1.0953y=10000×1.312932375y=13129.3
So you would owe $13129.30, after 3 years, given that you do not deposit any money over the course of that time

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