Nathan took out a student loan for 1200$ at 10 percent annual interest, compounded annually. If he did not repay any of the loan or interest during the first 3 years, which of the following is the closest to the amount of interest he owed for the 3 years.  Options
A) 360
B) 390
C) 400
D) 410
E) 420
A straight Q requiring direct formulae..   when compounded annually the final amount=P(1+ r/100)^n..   here P=1200, r=10 and n=3..   1200(1+ 10/100)^3..   1200*1.1^3=1597.2   interest =1597-1200= 
<gadget id="calculator">1597-1200</gadget>
<output>397</output>
397, which is nearly 400 in the choices given   ANSWER:400
<result>C</result>
Nathan took out a student loan for 1200$ at 10 percent annual interest, compounded annually. If he did not repay any of the loan or interest during the first 3 years, which of the following is the closest to the amount of interest he owed for the 3 years.