anonymous
  • anonymous
How much money would you have to invest to make $300 within 2 years if the interest rate was 4.5%?
Mathematics
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
schrodinger
  • schrodinger
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
is it compound or simple interest?
anonymous
  • anonymous
simple interest
anonymous
  • anonymous
ok, then you have to first know the equation for simple interest, which is I = prt, so I is interest, p ir principal amount invested, r is rate, and t is time, so your equation is 300 = p * (4.5/100) * 2 p is the amount you need to invest to get the interest of 300. and we have to divide the percentage by 100 to get a rate in decimal. so, you simplify and ssubstitute to get: 300 = p * 0.09 p = 300/0.09 p = 3333.33$ so you got to invest 3333 dollars and 33 cents to get 300$ interest after 2 years at 4.5% simple interest

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

anonymous
  • anonymous
is it clear? do you understand it now?
anonymous
  • anonymous
where did you get the 0.09 from
anonymous
  • anonymous
oh nvm i no how
anonymous
  • anonymous
well, 300 = p * (4.5/100) * 2 so, if i divide 4.5 by 100 and multiply by 2, I get 0.09
anonymous
  • anonymous
so all you have to do is remember the formula for simple interest
anonymous
  • anonymous
so how would i write my equation
anonymous
  • anonymous
in all my practice stuff it looks like P = ..... not 300 = p
anonymous
  • anonymous
ok, the equation for simple interest goes like this: simple interest = amount invested x rate x number of years and dont forget that the rate is in decimal, so if the question gives you a percentage like 4.5% per year, you have to convert it to a decimal rate by dividing the percentage by 100.
anonymous
  • anonymous
so, after you write down the simple interest formula, you can replace the words with the numbers you are given, and then just solve for the variable you dont know
anonymous
  • anonymous
okay
anonymous
  • anonymous
get it?
anonymous
  • anonymous
if, yes, feel free to Become my fan LOL =D
anonymous
  • anonymous
sooo how do i write the equation
anonymous
  • anonymous
what do you mean??? I already gave you the formula, it can also be writen simply as i=prt so to get the equation, simply replace the letters with numbers, thats it. in your case, it will be like this: \[300 = p * (4.5) * 2\]
anonymous
  • anonymous
the * is for multiplication =D
anonymous
  • anonymous
and you can then move the variables around, like this, to make p the subject: \[p = 300/(4.5/100*2)\]
anonymous
  • anonymous
/ is for division
anonymous
  • anonymous
and the brackets ( ) simply tell you that you must do the calculations inside them first, before any other calculations
anonymous
  • anonymous
ok thank you...
anonymous
  • anonymous
Calculate the compounded amount on $2000 for 3 years at 5%, compounded annually.
anonymous
  • anonymous
wait, so is the 2000 dollars in the question the amount invested ?
anonymous
  • anonymous
i dont no, lol. thats exactly what the question says. i copy and pasted it
anonymous
  • anonymous
i guess so.
anonymous
  • anonymous
ok, well, this is VERY easy. but since it is compound interest you need to use a different formula, whic is \[A = P(1+R)^{n}\] A is the compound interest PLUS the original amount invested P is the original amount invested R is the rate (dont forget to divide the percentage by 100 to get rate) and n is the number of years so, in your case P is 2000, R is 5%/100=0.05 n is 3, and you do not know the A
anonymous
  • anonymous
ok
anonymous
  • anonymous
so, \[A = 2000(1+0.05)^{3}\] which is \[A = 2000(1.05)^{3}\] which is A = 2000 * 1.157625 and that results to A = 2315.25 so A is the total amount in bank right now, including both the interest and the original amount, so to get the interest that you got only, you need to subtract the original amount from A, which is 2315.25-2000=315.25 so the compound interest you get after investing a 2000 at 5% compound interest for 3 years is $2315.25
anonymous
  • anonymous
got it?
anonymous
  • anonymous
ok, you know both of the formulas now, and the methods how to solve this kind of problems, so just practise and experiment, and enjoy maths, because maths is EASY if you tell yourelf it is easy, just relax and enjoy it. Good luck. If you got any more questions post them as a new question.
anonymous
  • anonymous
wouldnt it be $315.25
anonymous
  • anonymous
this is what i did and what i got .... 1year 1 - $2000 x 0.05 x 1 = $100 2 year 1 - $2100 x 0.05 x 1 = $105 3 year 1 - $2205 x 0.05 x 1 = $110.25 100 + 105 + 110.25 = $315.25
anonymous
  • anonymous
that is what i said, I just mistakenly forgot to remove the 2 infront
anonymous
  • anonymous
and that results to A = 2315.25 so A is the total amount in bank right now, including both the interest and the original amount, so to get the interest that you got only, you need to subtract the original amount from A, which is 2315.25-2000=315.25
anonymous
  • anonymous
A is 2315.25, but this is not interest, it is interest + investment. but interest only is 315.25 so yes you are right
anonymous
  • anonymous
ok thank youuu

Looking for something else?

Not the answer you are looking for? Search for more explanations.