claire wants to take out a small personal loan to renovate her kitchen. she borrows $3,000. her loan has an…

claire wants to take out a small personal loan to renovate her kitchen. she borrows $3,000. her loan has an annual compound interest rate of 15%. the loan compounds once each year. when you calculate claires debt, be sure to use the formula for annual compound interest. $a = p(1+\frac{r}{n})^{nt}$ if claire does not make any payments, how much will she owe after ten years? $12,136.67 $3,481.24 $6,090.90 $3,232.74

claire wants to take out a small personal loan to renovate her kitchen. she borrows $3,000. her loan has an annual compound interest rate of 15%. the loan compounds once each year. when you calculate claires debt, be sure to use the formula for annual compound interest. $a = p(1+\frac{r}{n})^{nt}$ if claire does not make any payments, how much will she owe after ten years? $12,136.67 $3,481.24 $6,090.90 $3,232.74

Answer

Answer:

A. $12,136.67

Explanation:

Step1: Identify values

$P = 3000$, $r=0.15$, $n = 1$, $t = 10$

Step2: Substitute into formula

$A=3000(1 +\frac{0.15}{1})^{1\times10}$

Step3: Simplify exponent part

$(1 + 0.15)^{10}=1.15^{10}\approx4.0455577$

Step4: Calculate final amount

$A = 3000\times4.0455577\approx12136.67$