The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years
For this particular problem:
P = the borrowed amount (this isn't provided in the problem, so we'll represent it as P)
r = 17% = 0.17
n = 1 (since the interest is compounded once each year)
t = 2 years
Substitute the given values into the formula:
A = P(1 + 0.17/1)^(1*2)
A = P(1 + 0.17)^(2)
A = P(1.17^2)
Therefore, the amount owed at the end of 2 years would be 1.17^2, or roughly 1.37, times the original borrowed amount P. Without knowing the original amount borrowed, it is impossible to provide an exact answer to the problem.
Suppose that Jose burrows 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 2 years
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