Answer: To calculate how much Julie will pay the bank in total for her $1,000 loan with a 10 percent compound interest rate over two years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Explanation: Where:
A = the future value of the loan, including interest
P = the principal amount (the initial loan amount)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years the money is invested or borrowed for
In this case:
P (principal) = $1,000
r (annual interest rate) = 10 percent or 0.10 as a decimal
n (number of times interest is compounded per year) is not provided, so let's assume it's compounded annually (n = 1).
t (number of years) = 2
Now, we can plug these values into the formula and calculate the future value (A):
A = $1,000(1 + 0.10/1)^(1*2)
A = $1,000(1 + 0.10)^2
A = $1,000(1.10)^2
A = $1,000 * 1.21
A = $1,210
So, Julie will pay the bank a total of $1,210 over the course of two years for her $1,000 loan with a 10 percent compound interest rate.