Debbie took out a loan from a bank at 15% interest compounded annually. After 2 years, the balance on the loan was 1,000.00. How much interest had accumulated on the loan?

Solution

Debbie took out a loan from a bank at 15% interest compounded annually. After 2 years, the balance on the loan was 1, 000.00. How much interest had accumulated on the loan?

Solution

Interest : 243.86

Solution steps

Translate the problem into an equation:

1000 = 756.14366 \dots + I

Solve for

I, 1000 = 756.14366 \dots + I : I = 243.86

Interest : 243.86

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