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A loan is borrowed for $1200 for 2 years at a compound interest of 6%. Interest is compounded annually. What is the compound amount?
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A loan is borrowed for $1200 for 2 years at a compound interest of 6%. Interest is compounded annually. What is the compound amount?

User Irishka
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2 Answers

3 votes
The formula of compound interest is
A=p (1+r)^t
A future value?
P present value 1200
R interest rate 0.06
T time 2 years

A=1,200×(1+0.06)^(2)
A=1,348.32
User Janesh Kodikara
by
7.1k points
3 votes

A = 1200(1 + 0.06)^2= 1348.32


User Avepr
by
7.2k points
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