1. **State the problem:** Evie takes out a loan of 600 pounds with compound interest at 24% per year. We need to find how much she will owe after 12 years. 2. **Formula for compound interest:** $$ A = P \left(1 + \frac{r}{n}\right)^{nt} $$ where: - $A$ is the amount owed after time $t$, - $P$ is the principal (initial amount), - $r$ is the annual interest rate (decimal), - $n$ is the number of times interest is compounded per year, - $t$ is the number of years. 3. **Important rules:** - Since the interest is compounded yearly, $n=1$. - Convert the percentage rate to decimal: $24\% = 0.24$. 4. **Substitute values:** $$ A = 600 \left(1 + \frac{0.24}{1}\right)^{1 \times 12} = 600 (1.24)^{12} $$ 5. **Calculate the power:** $$ (1.24)^{12} \approx 14.5519 $$ 6. **Calculate the amount:** $$ A = 600 \times 14.5519 = 8731.14 $$ 7. **Round to nearest penny:** Evie will owe approximately **8731.14** pounds after 12 years.