9514 1404 393
Answer:
(a) $3480
(b) $4036.80
Step-by-step explanation:
(a) The amount due on the loan at the end of 1 year is ...
$3000×(1 +16%) = 1.16×$3000 = $3480
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(b) The same multiplier applies to the loan value for the second year. The amount due at the end of year 2 is ...
1.16×$3480 = $4036.80
