The profit of his investment after 2 years is $8,063.60.
The profit earned is the difference between the amount he earned from the deposit at the bank and the interest paid on the loan.
Total value of the loan in 2 years : 100,000 x (1.042²) = 108,576.40
Total value of the amount deposited in 2 years : 100,000 x (1.08²) = 116,640
Difference = 116,640 - 108,576.40 = $8,063.60
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