



 
With compound interest (almost always the case today), at the end of each month you owe what you did at the beginning plus another 2% of that  that is, (1 + 0.02) or 1.02 times what you originally owed. Then after the next month you owe 1.02 × 1.02 × the original amount, and so on. The general formula is (1+R)^{N} × P where P is the principle, N the number of periods, and R the rate per period. Good Hunting!  


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