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
BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course
Redeem
Featured Course
Target Test Prep GMAT OnDemand
Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.
- 715+ score guarantee — highest in the industry (99th percentile)
- 52 chapters · 1,500+ lessons · 4,000+ practice questions
- 400 hours of video · 1,500+ instructor-led HD smartboard lessons
- 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
- 24/7 live support + weekly Zoom office hours with GMAT instructors
- TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
- 1,200+ flashcards + AI-powered study assistant & daily calendar
- OnDemand, LiveTeach & GMAT Bootcamp formats available
- Also: GRE, SAT Math & Executive Assessment courses
- MBA Admissions Consulting now available
- 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
- 200,000+ students served
- 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★
5.0
(559 reviews)
130-pt guarantee
$0 to start
then $127/mo
