The compounded loan means that in the first year the 10.2% of interest is add to the initial 54200 and that value generate the next year the 10.2%
then in the first year the interest will be:
You use a rule of three:
[tex]\text{1st}=\frac{54200\cdot10.2}{100}=5528.4[/tex]As the first year the interest is 5528.4
To the second year that sum is added to the 54200 to get the interest:
[tex]54200+5528.4=59728.4[/tex][tex]2nd=\frac{59728.4\cdot10.2}{100}=6092.3[/tex]Third year:
[tex]59728.4+6092.3=60820.7[/tex][tex]3rd=\frac{60820.7\cdot10.2}{100}=6203.7[/tex]Fourth year:
[tex]60820.7+6203.7=67024.4[/tex][tex]4th=\frac{67024.4\cdot10.2}{100}=6836.5[/tex]After 4 years:
[tex]67024.4+6836.5=73860.9[/tex][tex]=\frac{73860.9\cdot10.2}{100}=7533.8[/tex]After 4 years the interest will be: 7533.8
