Asked by Riley

Suppose you take a loan of $1000 today at a compound interest of 10 percent. Calculate the loan amount at the end of year 2.
Thanks!!!
Answered by Damon
Do you mean what do you owe?
1000 * 1.10 * 1.10
Answered by Riley
I believe it’s asking how much the loan amount becomes after the interest is applied. The options are:
$1210
$1100
$1215
$1000

Thank you!!