Donald took out a loan from a bank at 13% interest compounded quarterly. After 2 years, the balance on the loan was 6,000.00. How much interest had accumulated on the loan?

Solution

Donald took out a loan from a bank at 13% interest compounded quarterly. After 2 years, the balance on the loan was 6, 000.00. How much interest had accumulated on the loan?

Solution

Interest : 1354.52

Solution steps

Translate the problem into an equation:

6000 = 4645.48185 \dots + I

Solve for

I, 6000 = 4645.48185 \dots + I : I = 1354.52

Interest : 1354.52

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