Quantcast

A community for students. Sign up today!

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

sarah_98

  • 2 years ago

ryan puts $500 into a bank account. the bank pays 5% compound interest per year. how much is the interest after one year?

  • This Question is Closed
  1. ParthKohli
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    Continuous compounding. \( \color{Black}{\Rightarrow 500(1 + 0.05) \large^n }\)

  2. ParthKohli
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    \(n\textbf{ is the number of years.}\)

  3. sarah_98
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    ok

  4. ParthKohli
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    \( \color{Black}{\Rightarrow 500(1.05)^1 }\) \( \color{Black}{\Rightarrow 500 \times 1.05 }\)

  5. sarah_98
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    $525?

  6. sarah_98
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    is it?

  7. ParthKohli
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    This is compounded interest.

  8. sarah_98
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    im confused :s

  9. ParthKohli
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    And yes it is $525 :)

  10. sarah_98
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    oh ok there's part 2

  11. ZhangYan
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    lol sorry parth read mistake ;)

  12. ParthKohli
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    Interest = Amount - Principal Interest = 525 - 500 Interest = 25

  13. sarah_98
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    work out the total amount he has in his bank account after 2 yrs

  14. ParthKohli
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 2

    @ZhangYan if it's one year then both simple and compound may apply :) so your answer is correct but not the method :S

  15. sarah_98
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    work out the total amount he has in his bank account after 2 yrs

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

    • Attachments:

Ask your own question

Ask a Question
Find more explanations on OpenStudy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.