e borrowed $1000 at a 10% annual interest rate. If we did not make a payment for two years, and assuming there is no penalty for non-payment, how much do we owe now? Assign the result to a variable called debt.
Answers
Given : borrowed $1000 at a 10% annual interest rate.
To find : how much do owe after two years
Solution:
borrowed $1000 at a 10% annual interest rate
P = $ 1000
R = 10 % per annum
did not make a payment for two years
=> T = 2 Years
assuming there is no penalty for non-payment
( hence considering Simple interest too )
Owe now = Principle + Interest
Interest = P * R * T /100
=> Interest = 1000 * 10 * 2 /100
= 200 $
Debt amount = 1000 + 200 = $ 1200
Amount owed = $ 1200
$ 1200 is debt
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Answer:
borrowed = 1000
rate = 0.1
first_year_debt=borrowed*rate+borrowed
debt=first_year_debt+first_year_debt*rate