Find the interest on the loan if you borrowed $2,000 at 8% for 1 year.

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Find the interest on the loan if you borrowed $2,000 at 8% for 1 year.

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    2021-09-10T07:15:49+00:00

    Future Value = Present Value*(1 + interest rate)^(# of years)

    Future Value = $2,000(1+0.08)^1

    Future Value = $2,000(1.08) = $2,160

    To find the interest on the loan, we need to do our Future Value – Present Value.

    Future Value – Present Value = $2,160 – $2,000 = $160

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