Answer:
Step-by-step explanation:
Given;
Loan = $5,000
Interest rate = 13% charged at the end of each year
Question 1. Expression to represent the amount owed, in dollars, after;
a. After 1 year.
Owed amount = Loan + accrued interest= $5000 + ( 13% * $5000 * 1 year )
= 5650
b. After 2 years.
Owed amount = Loan + accrued interest
= $5000 + ( 13% * $5000 * 2 years )
= $6300
c. After t years
Owed amount = Loan + accrued interest= $5000 + ( 13% * $5000 * t years )= $5000 + $650t
Question 2. Explain how to convince someone that your expression for t years is correct.
Amount owned= borrowed amount + accrued interest
Accrued interest = Interest rate per year * Loan amount * time in years ( for simple interest case )
Loan amount = $5000
Time = t years
Interest rate = 13% per year
Accrued interest = 13% * $5000 *t years= $650t
Amount owned will therefore be; = Loan amount + Accrued interest
= $5000 + $650t
