Question

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

Answer 1

[AI-generated answer — Bot GPT 3.5]

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.