Question

If you borrow $5,000 with 4% interest compounded annually, how much total interest do you need to pay after 2 years?

Answer 1

the answer is 3,500 if you take 6% interest

Answer 2

5400 needs to be paid after 2 years, and 400 will be paid in interest after 2 years

Explanation:

.4 x 5000=200

5000+(2)200=x

5000+400=x

5400 needs to be paid after 2 years, and 400 will be paid in interest after 2 years