Suppose that Jose burrows at an interest rate of 17% compounded each year assume that no payments are made on the loan find the amount owed at the end of 2 years
The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest.
P = principal amount (the initial amount of money)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years
For this particular problem:
P = the borrowed amount (this isn't provided in the problem, so we'll represent it as P)
r = 17% = 0.17
n = 1 (since the interest is compounded once each year)
t = 2 years
Substitute the given values into the formula:
A = P(1 + 0.17/1)^(1*2)
A = P(1 + 0.17)^(2)
A = P(1.17^2)
Therefore, the amount owed at the end of 2 years would be 1.17^2, or roughly 1.37, times the original borrowed amount P. Without knowing the original amount borrowed, it is impossible to provide an exact answer to the problem.
To find the amount owed at the end of 2 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount owed at the end of 2 years
P = the principal amount (the initial loan amount)
r = the annual interest rate (as a decimal)
n = the number of times interest is compounded per year
t = the number of years
In this case, Jose's interest rate is 17% compounded each year, which means:
r = 17% / 100% = 0.17
n = 1 (compounded annually)
t = 2 years
Now, we can substitute the values into the formula and calculate the amount owed:
A = P(1 + r/n)^(nt)
A = P(1 + 0.17/1)^(1*2)
A = P(1 + 0.17)^2
Since no information was provided about the principal amount (P), I cannot provide an exact value for the amount owed. However, you can use this formula with the principal amount to find the specific value in your situation.