Compound Interest

This item is taken from IGCSE Mathematics (0580) Paper 03 of October/November 2009.

To deal with this item, let us summarize the details of the problem:
   (a) Syllabus area: Algebra
   (b) Specific topic: Compound Interest
   (c) Formula Needed:

Let us identify first the given in the problem:

Now, using the formula for compound interest, we can now find the total amount.

Therefore, Peter owes $5962.32 from the bank after two (2) years.

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