suppose maya borrows $6100 at an interest rate of 17% compounded each year. assume that no payments are made…

Explanation:

Step1: Recall compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. Here, $P=$6100$, $r = 0.17$, and we will calculate for different values of $t$.

Step2: Calculate amount owed at the end of 1 year

Substitute $P = 6100$, $r=0.17$, and $t = 1$ into the formula $A = P(1 + r)^t$. $A_1=6100\times(1 + 0.17)^1=6100\times1.17 = 7137$

Step3: Calculate amount owed at the end of 2 years

Substitute $P = 6100$, $r = 0.17$, and $t = 2$ into the formula $A = P(1 + r)^t$. $A_2=6100\times(1 + 0.17)^2=6100\times1.17^2=6100\times1.3689=8350.29$

Answer:

(a) $7137 (b) $8350.29