The amount which Matias owes the bank after one year according to the calculation is wrong as it should be at least 112% of the principal amount.
How much does Matias owe the bank after one year?
It follows from the task content that the amount borrowed in the first instance is $10,000 at a 12% annual interest rate.
On this note, it follows that the total amount owed after the first year is 112% of the principal amount. Hence, the mathematical calculation is wrong.
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