Question

Let's assume that a carpenter borrowed ​$2 comma 000 to be paid off in a year to finance a machine that would make him work faster. As a​ result, he is able to take on more projects and collect ​$400 more earnings in the first​ year, after paying off the principal of ​$2 comma 000. ​However, there is a 12​% rental fee​ (interest) on his loan that he also has to pay off. The carpenter earned an extra ​$ nothing in the first year. ​(Round your response to the nearest​ dollar)

Answer 1

The carpenter earned an extra ​$ nothing in the first year.

$160

Step-by-step explanation:

Loan 2000

% interest 12%

FV=C*(1+I)

FV=2000*(1+12%)

FV=2000*1,12

FV=2240

Loan = 2000

Interest=240

Earn=400

Extra earning=400-240

Extra earning=160