Answer:
Explanation:
Assuming that the interest is compounded monthly, Ben's total amount owed to the bank after 12 months can be calculated using the following formula:
A = P*(1+r/n)^(n*t)
Where:
P = principal amount borrowed = $10,000
r = annual interest rate as a decimal = 0.12
n = number of times the interest is compounded per year = 12 (monthly)
t = time period for which the interest is applied in years = 1
Plugging in the values, we get:
A = 10,000*(1+0.12/12)^(12*1)
A = $11,268.70
Therefore, Ben owes the bank a total of $11,268.70 after 12 months.