suppose maya borrows $6000 at an interest rate of 17% compounded each year. assume that no payments are made…

Explanation:

Step1: Recall compound - interest formula for 1 - year

The formula for compound interest when compounded annually is $A = P(1 + r)$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form). Given $P=$6000$ and $r = 0.17$. $A_1=6000\times(1 + 0.17)$

Step2: Calculate the amount owed at the end of 1 year

$A_1=6000\times1.17=$6960$

Step3: Use the result of 1 - year as principal for 2 - year

For the second - year, the principal $P_2$ is the amount owed at the end of the first year, $P_2 = 6960$. The formula for the amount owed at the end of the second year is $A_2=P_2(1 + r)$. $A_2=6960\times(1 + 0.17)$

Step4: Calculate the amount owed at the end of 2 years

$A_2=6960\times1.17=$8143.2$

Answer:

(a) $$6960$ (b) $$8143.2$