Suppose Yolanda Burroughs, $2000 at an interest rate of 30% compounded each year. I assume that no payments are made on the loan.   Find the amount owed at the end of one year.

To find the amount Yolanda Burroughs will owe at the end of one year, we use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

where:
- $ A $ is the amount of money accumulated after $ t $ years, including interest.
- $ P $ is the principal amount (the initial amount of money).
- $ r $ is the annual interest rate (as a decimal).
- $ n $ is the number of times that interest is compounded per year.
- $ t $ is the time the money is invested or borrowed for, in years.

Given:
- $ P = 2000 $ (the initial amount of the loan)
- $ r = 30\% = 0.30 $
- $ n = 1 $ (since the interest is compounded annually)
- $ t = 1 $ year

Plug these values into the formula:

\[
A = 2000 \left(1 + \frac{0.30}{1}\right)^{1 \times 1}
\]

\[
A = 2000 \left(1 + 0.30\right)^{1}
\]

\[
A = 2000 \times 1.30 = 2600
\]

So, Yolanda Burroughs will owe **$2600** at the end of one year.

Would you like more details or have any questions?

Here are 8 related questions you might find useful:
1. What would be the amount owed after two years with the same interest rate and compounding frequency?
2. How does the amount owed change if the interest is compounded semi-annually instead of annually?
3. What is the formula for compound interest if the interest is compounded monthly?
4. How does changing the interest rate to 25% affect the amount owed after one year?
5. What would the total interest amount be after one year?
6. How would the amount owed differ if the interest was simple interest instead of compound interest?
7. What is the effective annual rate (EAR) for a 30% interest rate compounded annually?
8. How would the loan amount change if instead of $2000, Yolanda borrowed $5000 at the same interest rate?

**Tip:** Always make sure to convert the interest rate into a decimal before using it in calculations.

Learn how to calculate compound interest for Yolanda Burroughs' $2000 loan at an annual interest rate of 30%, compounded annually. Detailed step-by-step solution using the compound interest formula. Suitable for high school students.

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