Question

A loan of £1000 has a compound interest rate of 2.7% charged monthly. Express the original loan as a percentage of the total amount awed after 2 months if no payment are made

Answer 1

Answer:

£1054.729

Step-by-step explanation:

To find compound interest you need to use the equation 1000(1.027)^x.

To find the interest rate (1.027):

100 + 2.7 = 102.7

102.7 / 100 = 1.027

The value of x is the amount of months if no payment is made in this situation, so 2 would be the x value for this problem.

Hope this helps!