faye borrowed $9600 a! $% per annum compound interest - calculate the interest on the loan for the first year
9600 * r
where r is the interest rate
To calculate the interest on the loan for the first year, we need to use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the loan
P = the principal amount (initial loan amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, Faye borrowed $9600 with an annual compound interest rate of a! $% (assuming you meant 1%). We'll assume that the interest is compounded annually, so n = 1, and we're calculating for the first year, so t = 1.
Plugging in the values, the formula becomes:
A = 9600(1 + 0.01/1)^(1*1)
Simplifying:
A = 9600(1 + 0.01)^1
A = 9600(1.01)
A = 9696
The future value of the loan after one year is $9696.
To calculate the interest on the loan for the first year, subtract the principal amount from the future value:
Interest = Future Value - Principal
Interest = 9696 - 9600
Interest = 96
Therefore, the interest on the loan for the first year is $96.