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43 votes
43 votes
Peter borrowed $100,000 at 8% compounded

annually, how much will he be paying after 2
years?

User Zaid Qureshi
by
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1 Answer

9 votes
9 votes

Answer:

The general formula for this type of problem is F=P[1+(i/n)]^(nt), where F is the Future Worth, P is Present Worth, i is interest, n=1 for annual payments, and t for the number of periods - which is 2. This is solved as: F=100000[1+(0.08/1)]^(1*2)=116640

Explanation:

User Raoulsson
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