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

User Scvalex
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1 Answer

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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
User Roelvogel
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