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by aatech » Wed May 14, 2008 8:53 am
Future value of the loan after 3 years compounding annually can be calculated as

FV = P[1 + {rate/100}]^years

in this case

FV = 1200[1+{10/100}}^3 = 1597.2

Interest accrued = 1597.2 - 1200 = 397.2 close to 400
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