+16 Joseph borrows $10000 from his sister Katie at an annual interest rate of 10%. If the interest is compounded twice a year, how much does he owe after 12 months? Give your answer in dollars.
+526 The formula of CI is
\(A=P(1+ {r\over n})^{nt}\)
where A = final amount
P = principal amount
r = rate
t = time (in years)
n = no. of times compounded
So, here P = 10000, r = 10% = 0.1, n = 2, t = 1 year.
Now, simply put the values
\(A= 10000(1+ {0.1\over 2})^2\)
\(A=$11,025\)
~Hope you got it.
