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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.

Guest Mar 11, 2017
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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.

Guest Mar 11, 2017

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