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yKpoI14uk [10]
3 years ago
7

Mark borrowed $200 at 12% compound interest for two years. If he makes no payments. How much interest will he owe at the end of

the second year?
Mathematics
1 answer:
TiliK225 [7]3 years ago
3 0
Amount payable after two years is calculated using the following equation:

A= P(1+r)^n
Where
A= Amount payable, P=Amount borrowed, r = annual interest, n=number of years

Interest, C = A-P
Substituting

C= 200(1+0.12)^2 - 200 = 250.88-200 = $50.88
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