Question: Fred borrowed $2,000 from a loan shark to be repaid in 8 years with 14% annually compounded interest. The loan may be repaid at the end of any earlier year with no prepayment penalty.
What amount will be due if Fred repays the loan at the end of year 1?
What amount will be due if Fred repays the loan at the end of year 4?
What amount will be due if Fred repays the loan at the end of year 8?