SOLUTION: Suppose you borrow $5000 at 8% interest compunded monthly. If you pay back the loan in 2 years, how much did you pay in interest?

Question 322867: Suppose you borrow $5000 at 8% interest compunded monthly. If you pay back the loan in 2 years, how much did you pay in interest?
Answer by unlockmath(1688) (Show Source): You can put this solution on YOUR website!
Hello,
The formula we want to follow is:
A=P(1+r/n)^nt
P is the principal ($5,000)
r is the rate (.08)
n is number times per year (12)
t is the number of years (2)
Plug these in and we get:
A=5,000(1+.08/12)^24
At this point we'll need a scientific Calculator.
I don't have one available right now so go ahead
and do the calculations.
RJ
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