Question

We 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?

Answer 1

Answer:

lol

Step-by-step explanation:

Answer 2

They owe $ 1200 now

Solution:

Given that,

We borrowed $1000 at a 10% annual interest rate

We did not make a payment for two years

Find the interest earned

$Interest = \frac{ p \times n \times r}{100}$

Where,

p is the principal

n is the number of years

r is the rate of interest

From given,

p = 1000

r = 10 %

n = 2 years

Therefore,

$Interest = \frac{1000 \times 2 \times 10}{100}\\\\Interest = 200$

How much do we owe now?

Amount = principal + interest

Amount = 1000 + 200

Amount = 1200

Thus they owe $ 1200 now

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