Joseph borrows $10000 from his sister kate at an annual interest rate of 10%. If the interest is compounded twice a year, how much doe she owe after 12 months?

LookingForAnswers Jun 5, 2021

#1**+1 **

If interest is compounded twice a year, it is compounded every 6 months. Thus, after 12 months, interest will have compounded twice. \(1.1^2*10,000\) = \(1.21*10,000 = $12,100\)

EnchantedLava68 Jun 5, 2021