We continue with the same example: you borrow $100 from your friend who charges you 30% in interest per year. On the previous slide you found the total amount you owe at the end of one year. This is the amount you owe at the beginning of the second year. At the end of the second year, interest is calculated again, and added to the amount you owe. ****The amount owed after one year was $130
(a) Determine the amount you owe your friend in interest for the second year.
(b) Determine the total amount you owe your friend after the second year.
(c) Is the amount you owed in interest for the second year equal to the amount you owed in interest for the first year? In words below, describe why the two amounts are equal or not equal.