https://file.aiquickdraw.com/mathbot/file/172582720608552r95xse.jpg

The question asks how much Evie will owe after 12 years on a loan of £600 with a compound interest rate of 24% per year. To solve this, we will use the compound interest formula:

\[
A = P \left(1 + \frac{r}{100}\right)^t
\]

Where:
- \( A \) is the amount of money owed after the given time.
- \( P = 600 \) is the principal amount (initial loan).
- \( r = 24\% \) is the annual interest rate.
- \( t = 12 \) years is the time period.

Now, let's calculate this.After 12 years, Evie will owe £7928.87 on the loan.

Would you like more details or have any questions about this calculation?

Here are 5 related questions to explore this topic further:
1. What would happen if the interest rate was reduced to 15% per year?
2. How much would Evie owe after 5 years instead of 12 years?
3. How does compound interest differ from simple interest?
4. What happens to the total amount owed if the interest is compounded monthly instead of annually?
5. How would the result change if Evie made yearly payments on the loan?

**Tip:** Compound interest grows exponentially over time, so even small changes in the interest rate or loan duration can have a large impact on the total amount owed.

Evie takes out a loan of £600. It gains compound interest at a rate of 24% per year. How much money will Evie owe after 12 years? Give your answer in pounds (£) to the nearest 1p.

Learn how to calculate compound interest on a £600 loan with an interest rate of 24% per year over 12 years. This problem involves using the compound interest formula and exploring exponential growth, suitable for students in Grades 9-11.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation