Answer:
Compound interest = $365.4
Step-by-step explanation:
Given:
Amount borrowed = $6,000
Rate of interest = 3%
Number of year = year
Find:
Compound interest
Computation:
A = P[1+r]ⁿ
Amount after 2 year = 6,000[1 + 3%]²
Amount after 2 year = 6,000[1 + 0.03]²
Amount after 2 year = 6,000[1.03]²
Amount after 2 year = 6,000[1.0609]
Amount after 2 year = 6,365.4
Compound interest = Amount after 2 year - Amount borrowed
Compound interest = 6,365.4 - 6,000
Compound interest = $365.4
