Course: My First Car - Algebra

Compounding the Interest Paid

Assuming the loan is compounded monthly, use the following formula to calculate the total price for each loan term (3 years, 4 years, and 5 years.

A=p(1+$$ \frac{r}{n} $$)^nt Where A = amount of loan, r = the annual interest rate (expressed as a decimal, and n = the number of times it compounds in a year and t = the time in years.

Click on the Compounding the Interest Paid link below and follow the directions.

Use the following format:

3 Year Loan=
Total Price After 3 Years=

4 Year Loan=
Total Price After 4 Years =

5 Year Loan=
Total Price After 5 Years =