Answered

Rahul has a loan of 7000 dollars.

He pays 2% per month compound interest.

How much will he pay if he has the loan for two months


Please include the formula to this question! Thank you very much! :)

Verified Answer :

taskmasters

You are given a loan of 7000 dollars from Raul. He pays 2% per month
compound interest. You are required to find how much he will be paying if he
loaned it for 2 months. We have the equation A = P(1+r/n)^nt where A is the final amount, P is the principal amount, r is the rate of interest, n is
the number of times per year and t is the time.



A = P(1+r/n)^nt

7000 = P(1+0.02/12)^(12)(2/12)

P = 6976.72 dollars

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