Its for my bf
He has a 4000.00 dollar loan with 9% interest 8 months annually how much would he owe?
I have no idea how to do these problems
thanx
ph yea its a student loan
check out Compound interest - Wikipedia, the free encyclopedia
you need to use this formula
$\displaystyle Amount = amount to borrow * (1 + interest rate)^time$
I would say that if the interest is calcualted monthly then the amount that he would owe would be
$\displaystyle Amount = 4000 * (1 + \frac{0.08}{12})^8 $
I calculate that the Amount would be $4218.38