Brittany took out a loan from a bank at 14% interest compounded monthly. After 2 years, the balance on the loan was 1,000.00. How much interest had accumulated on the loan?

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Solution

Brittany took out a loan from a bank at 14% interest compounded monthly. After 2 years, the balance on the loan was 1, 000.00. How much interest had accumulated on the loan?

Solution

Interest : 242.99

Solution steps

Translate the problem into an equation:

1000 = 757.00966 \dots + I

Solve for

I, 1000 = 757.00966 \dots + I : I = 242.99

Interest : 242.99

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