Question

Gina takes out a loan totaling $5000. The loan has a 5% interest rate that is compounded monthly. What is the total due after 48 months, assuming that she has not made any payments?

Answer 1

Using the formula A=P(1+i/100)^n
where A is the investment/loan after n years, P is the original investment/loan and i% is the interest per annum.

A=5000(1+0.05)^48
A=52006.35