Jayla took out a loan from a bank at 5% interest compounded annually. After 3 years, the balance on the loan was 1,000.00. How much interest had accumulated on the loan?

Solution

Jayla took out a loan from a bank at 5% interest compounded annually. After 3 years, the balance on the loan was 1, 000.00. How much interest had accumulated on the loan?

Solution

Interest : 136.16

Solution steps

Translate the problem into an equation:

1000 = 863.83759 \dots + I

Solve for

I, 1000 = 863.83759 \dots + I : I = 136.16

Interest : 136.16

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