Question

matias needs to know how much he will owe the bank after one year. explain why his math is wrong. $10,000 × .12 + $99 = $1,299

Explanation:

Step1: Identify Interest Type

Matias likely has monthly compounded interest (or simple interest misapplied). The 12% annual rate is 1% monthly ($\frac{12\%}{12}=1\%$).

Step2: Analyze His Calculation

He used $10,000 \times 0.12 + 99$, but if it's monthly interest, he should calculate interest each month (or use compound/simple interest formula correctly). For simple interest: $I = P \times r \times t = 10,000 \times 0.12 \times 1 = 1,200$, so total owed is $10,000 + 1,200 = 11,200$. His addition of $99$ is incorrect (no context for $99$), and he misapplied the interest calculation (e.g., mixing annual and monthly without proper formula).

Answer:

Matias’ math is wrong because: 1) The $99$ is unaccounted for (no context shows why to add it). 2) For 12% annual interest (simple interest), interest is $10,000 \times 0.12 = 1,200$, so total owed is $10,000 + 1,200 = 11,200$, not $1,299$. If it’s monthly interest (1% monthly), he should calculate monthly interest (e.g., $10,000 \times 0.01 = 100$ per month, 12 months = $1,200$), still not matching $1,299$. The $99$ is an error, and the interest calculation is misapplied (wrong formula/extra term).