The compound interest formula is F = P(1 + i)^n where F is the total amount due, P is the initial cost or amount of money, i is the interest rate, and n is the number of periods interest is computed.

A student purchases a $1300 laptop computer for school. The deal does not require payment until 2 years later. If interest is computed monthly, how much does the student have to pay at the end of 2 years? The monthly interest rate is 1.8 percent.

Question

The compound interest formula is F = P(1 + i)^n where F is the total amount due, P is the initial cost or amount of money, i is the interest rate, and n is the number of periods interest is computed.

A student purchases a $1300 laptop computer for school. The deal does not require payment until 2 years later. If interest is computed monthly, how much does the student have to pay at the end of 2 years? The monthly interest rate is 1.8 percent.

anonymous · Answer

If the cost of the laptop is the same, how much does the student owe if the interest rate is 21.6 percent computed annually?

anonymous · Answer

It seems like an exercise to plug in values into that given formula.