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SVEN [57.7K]
3 years ago
10

What is the total compound interest of a loan for $5,000 with an annual interest rate of 8 percent at the end of a two-year peri

od? $400 $432 $832 $800
History
1 answer:
ahrayia [7]3 years ago
6 0
The formula to find compound interest is
A = P ( 1 + r/n )^nt
Use this to solve your problem.
A = 5,000 ( 1 + 0.08/1 )^1•2
A = 5,000 • 1.1664
A = 5,832

Now this question is only asking about the interest gained. To find this, subtract the original amount from the new amount.
5,832 - 5,000 = 832
Your answer is $832
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