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28 July, 12:49

Find the interest on the loan if you borrowed $2,000 at 8% for 1 year.

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  1. 28 July, 13:19
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    Future Value = Present Value * (1 + interest rate) ^ (# of years)

    Future Value = $2,000 (1+0.08) ^1

    Future Value = $2,000 (1.08) = $2,160

    To find the interest on the loan, we need to do our Future Value - Present Value.

    Future Value - Present Value = $2,160 - $2,000 = $160
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