document.write( "Question 251450: Brett took a loan of $55,000 and paid back a sum of $58,100 after 2 years. What is the interest he had to pay? \n" ); document.write( "

Algebra.Com's Answer #183185 by rfadrogane(214) $\"\"$ $\"About$

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The problem did not indicate whether the problem is a simple or a compound interest type.
\n" ); document.write( "So, were going to use this 2 method:
\n" ); document.write( " Let: I = the interest
\n" ); document.write( " P = principal amount
\n" ); document.write( " F = future amount
\n" ); document.write( " n = # of years
\n" ); document.write( " r = interest rate
\n" ); document.write( " ---For simple interest rate:
\n" ); document.write( " I = F - P
\n" ); document.write( " = $58,100 - $55,000
\n" ); document.write( " I = $3,100
\n" ); document.write( " I = Prn
\n" ); document.write( " 3,100 = 55,000(2)(r)
\n" ); document.write( " r = 2.82%---1st ans.
\n" ); document.write( " ---For compound interest rate:
\n" ); document.write( " F = P(1+r)^n
\n" ); document.write( " 58,100 = 55,000(1+r)^2
\n" ); document.write( " r = 2.8%---2nd ans.
\n" ); document.write( "
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