Question

A $500 loan for 2 years at a rate of 12%

I think the interest is $120.00

The amount owned is $620.00

Am i wrong?

Answer 1

The interest first year is 60, but on the second year the loan has increased.. c:

Answer 2

Thus the interest the second year would be more, no?

Answer 3

yes

Answer 4

but would the amount owned be the interest plus the original amount?

Answer 5

Yeah, the amount owed would be the amount + interest

Answer 6

thank you!