The amount owed at the end of one year can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt), where:
- P is the principal amount (the initial amount of money)
- r is the annual interest rate (in decimal form)
- n is the number of times that interest is compounded per unit time
- t is the time in years
In this case:
- P = $4000
- r = 17% = 0.17 (in decimal form)
- n = 1 (because the interest is compounded yearly)
- t = 1 (because we want to find the amount owed at the end of one year)
Plugging these into the formula gives:
A = $4000(1 + 0.17/1)^(1*1) = $4000(1.17) = $4680
So Jose will owe $4680 at the end of one year.
Suppose Jose borrows $4,000 at an interest rate of 17% compounded each year assume that no payments are made on the loan find the amount owed at the end of one year
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