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Answered

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Answer:

Step-by-step explanation:

Year on is 480 dollars and year two is 960 dollars

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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

__

(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

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