Question

We borrowed $1000 at a 10% annual interest rate.If we did not make a payment for two years, and assuming that there is not penalty for non payment , how much do we owe now?

Hint: If your answer is 1200 you are calculating simple interest.The question states an annual interest rate.Compound the interest once a year.

Answer 1

Step-by-step explanation:

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maryrosemartus2751

3 weeks ago

English

Secondary School

+5 pts

Answered

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

1

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xraghavxindianx

xraghavxindianx Ambitious

Answer:

You owe the lender ₹1200.

Explanation:

R=10% , P=₹100 ,T=2 yrs

SI= PRT/100

= 1000*10*2/100

= 200

Total Amount = SI + P

= 1000+200=1200

I Hope it will help you. :-)