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Suppose that a loan of $4500 is given at an interest rate of 12% compounded each year.
Assume that no payments are made on the loan.
Follow the instructions below. Do not do any rounding.
(a) Find the amount owed at the end of 1 year.
(b) Find the amount owed at the end of 2 years.
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Answer :

Noufxxngo
4,500 x 12/100 = 540
540+4,500= 5,040
In a year =
5,040 x 12=$60,480
2 yrs = 60,480 x 2 = $120,960

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