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.

Sandi123 Jun 15, 2021

#1**+2 **

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. *

amygdaleon305 Jun 15, 2021