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A loan is borrowed for $1200 for 2 years at a compound interest of 6%. Interest is compounded annually. What is the compound amount?

Respuesta :

musiclover10045

A = 1200(1 + 0.06)^2= 1348.32


Aliwohaish12
The formula of compound interest is
A=p (1+r)^t
A future value?
P present value 1200
R interest rate 0.06
T time 2 years

A=1,200×(1+0.06)^(2)
A=1,348.32