Peter borrows $5000 from a bank at a rate of 9.2% per year compound interest.
Calculate the amount he owes after 2 years.
Give your answer correct to 2 decimal places.
FV = PV [1 + R]^N
FV =5,000[1+0.092]^2
FV =5,000 x 1.192464
FV =$5,962.32 Principal + Interest after 2 years
$5,962.32 - $5,000 =$962.32 Interest Peter owes after 2 years.
