Answer:
The loan amount after 3 years is $ 5,196.88
Step-by-step explanation:
Given as :
The principal amount for room loan = $ 3,800
The rate of interest applied = 11% compounded annually
The time period of loan = 3 years
Let The Total loan amount = $ A
Now, From Compounded method :
Amount = Principal × [tex](1+\dfrac{\textrm rate}{100})^{\textrm time}[/tex]
or, A = $ 3,800 × [tex](1+\dfrac{\textrm 11}{100})^{\textrm 3}[/tex]
or, A = $ 3,800 × (1.11)³
or, A = $ 3,800 × 1.3676
∴ A = $ 5,196.88
So, Amount after 3 years = A = $ 5,196.88
Hence The loan amount after 3 years is $ 5,196.88 Answer
