For this case we have an equation of the form:
[tex] y = A * (b) ^ x
[/tex]
Where,
A: initial loan
b: interest rate
x: number of years
Substituting values we have that the function that models the problem is:
[tex] y = 4000 * (1.12) ^ x
[/tex]
By the end of the third year we have:
[tex] y = 4000 * (1.12) ^ 3
y = 5619,712
[/tex]
Answer:
the amount due at the end of 3 years is:
[tex] y = 5619,712 [/tex]
