Answer: $200([tex]1.04^{2}[/tex])
Step-by-step explanation:
The amount borrowed will be taken as the Principal, which is denoted with P , the amount he will be owing at the end of t years will be denoted with “ A” and the interest is already given as 4% which is the same as 0.04
[tex]\\[/tex]Given: P = $200
[tex]\\[/tex] r = 0.04
[tex]\\[/tex] Amount = A
[tex]\\[/tex]Time = t
[tex]\\[/tex]Recall the formula for calculating “Amount”
[tex]\\[/tex]A = [tex]P(1+r)^{t}[/tex]
[tex]\\[/tex]Where P is the principal , A is the amount, r is the rate and t is the time
[tex]\\[/tex]Substituting the values given into the formula , we will have
[tex]\\[/tex]A = [tex]$200(1+0.04)^{t}[/tex]
[tex]\\[/tex]A = [tex]$200(1.04)^{t}[/tex]
[tex]\\[/tex]This means that after t years, Raoul will owe the bank [tex]$200(1.04)^{t}[/tex]
