you borrow $1200 from your bank. the interest rate is 1% per month. how much will...

Question

Question

you borrow $1200 from your bank. the interest rate is 1% per month. how much will you have to pay back to the bank in one year?

business finance

Answer 1

Answer #1

As nothing is mentioned, we assume interest is paid at the end with loan amount, that is compounded monthly.

future value = present value *(1 + r)^n

future value = 1200 *(1 + 0.01)^12 = 1352.19

Answer : 1352.19 (Thumbs up please)

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Answer 2

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