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Determine how much you would revive in return for a 8 year, $500 loan to a friend of you charged 3% annual interest

1 Answer

9 votes

Answer:

The amount of annual interest you receive.

$500*8% = $40

The amount of interest you will receive for 8 years.

$40 x 8 years = $320

So after 8 years you will have a total of principal and interest .

$500 + $320 = $820

Explanation:

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