Question 1158239
simple interest formula (not compound interest formula) is used here, as much as i know.
the formula is:
f = p * (1 + r * n).
f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods


in this problem, the formula becomes:
f = 28,000 * (1 + .012 * 2)
time periods are in years.
r = 1.2% / 100 = .012 per year
n = 2 years
p = 28,000
solve for f to get:
f = 28,672
that's what must be repaid after 2 years.