The amount of money owed on a loan of $2300 for six years is $2590.17
The compound interest on a principal is given by:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
Where A is the final amount, r is the rate, P is the principal, t is the period and n is the number of times compounded in a period.
Given that:
P = 2300, r = 2% = 0.02, n = 1, t = 6 years, hence:
[tex]A=2300(1+\frac{0.02}{1} )^{6*1}\\\\A=2590.17[/tex]
The amount of money owed on a loan of $2300 for six years is $2590.17
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