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Joseph borrows $10000 from his sister Katie at an annual interest rate of 10%.... 0 56 1 +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.

Jun 15, 2021

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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.

Jun 15, 2021