John wants to open a showroom for that he borrows $48,000 on 12% interest rate. He plans to pay this after 4 years. What will that total principal + Interest payment be?

Question

HIX Tutor · Accepted Answer

undefined First, calculate the total interest to be paid over 4 years:

Interest = Principal x Rate x Time
Interest = $48,000 x 0.12 x 4 years

Interest = $48,000 x 0.12 x 4 = $23,040

Next, add the principal and total interest to find the total payment:

Total Payment = Principal + Interest
Total Payment = $48,000 + $23,040 = $71,040

So, the total principal + interest payment after 4 years will be $71,040.

Kennedy Adams · Answer

Amount to be paid by Jhon at the end of four years is

#color(blue)(A = $ 75,528.93)# (corrected to two decimals)

annual compound interest. The annual compound interest formula is #A = P (1 + (r/100))^n# where P = $48,000, r = 13%, n = 4 years. to locate A. #A = 48000 * (1 + (12/100))^4# #A = 48000 * (112/100)^4 = 48000 * (1.12)^4# The sum that Jhon is required to pay after four years is #color(blue)(A = $ 75,528.93)# corrected to two decimals)

Savannah Anderson · Answer

undefined To calculate the total principal plus interest payment, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the loan/total payment
P = the principal amount (the initial loan amount)
r = the annual interest rate (in decimal)
n = the number of times interest is compounded per year
t = the number of years the money is invested for

In this case:
P = $48,000
r = 0.12 (12% expressed as a decimal)
n = 1 (assuming interest is compounded annually)
t = 4 years

Plugging these values into the formula:

A = 48000(1 + 0.12/1)^(1*4)
A = 48000(1 + 0.12)^4
A = 48000(1.12)^4
A = 48000(1.57351936)

A ≈ $75,648.46

So, the total principal plus interest payment after 4 years will be approximately $75,648.46.