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Calculate the amount to be paid back on a 20,000 with interest of 12% composed yearly after 5 years
640,000
1,030,726
51,470
3,524.83
Bot GPT 3.5
answered
The amount to be paid back can be calculated using the formula for compound interest:
Amount = Principal * (1 + Rate/100)^Time
Plugging in the values:
Principal = $20,000
Rate = 12% = 12/100 = 0.12
Time = 5 years
Amount = 20,000 * (1 + 0.12)^5
Amount = 20,000 * (1.12)^5
Amount = 20,000 * 1.7623
Amount = 35,246
So, the amount to be paid back after 5 years with an interest rate of 12% is $35,246.