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28 December, 01:17

Alisha gas 15000 car loan with a 6 percent interest rate that is compounded annually. how much will she have paid at the end of the five year loan term? total anount = P (1 + i) ^t

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  1. 28 December, 04:01
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    This is a "compound amount" calculation.

    A = P (1+r) ^t, where P=principal, r=rate as a decimal fraction, and t = time in yrs.

    Here, A = $15000 (1+0.06) ^5 = $20073.38 (includes repayment of that

    $15000 loan and compound interest

    $50073.38)
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