A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 4 years ago
Stacey currently has an account balance of $1,007.78. Her initial deposit on the account was $616 and it earned 5.3% simple interest. How long has Stacey held the account?
anonymous
 4 years ago
Stacey currently has an account balance of $1,007.78. Her initial deposit on the account was $616 and it earned 5.3% simple interest. How long has Stacey held the account?

This Question is Closed

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0I need help with this question! please help me out i really need to pass this class and Im completely lost in it

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0i used to know how to solve this, but it's been awhile since I've done these kind of problems.

mathstudent55
 4 years ago
Best ResponseYou've already chosen the best response.2Simple interest is calculated as I = Prt, where P is the principal (amount of money invested), r = rate of interest written as decimal, and t = time The amount started as P and incresed by Prt, so P + Prt = 1007.78 616 + (616)(0.053)t = 1007.78 Now you need to solve for t: Subtract 616 from both sides and simplify: 32.648t = 391.78 Divide both sides by 32.648: t = 12 Answer: 12 years

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0can you help me out with this one Liam owns a business earning $43,200 in profits. These profits are appreciating at about 1.2% each year. What are Liam’s profits after six years?

mathstudent55
 4 years ago
Best ResponseYou've already chosen the best response.2In this case, this is not simple interest. His business earns $43,200 Now. After one year, Liam will earn $43,200 + 1.2% of $43,200. That is 43,200 + 0.012 * 43,200 = 43,200 + 518.40 = 43,718.40 For the next year, year two, he earns 1.2% more than 43,718.40. That is: 43,718 + 1.2% of $43,718.40 = 43,718.40 + 0.012 * 43,718.40 = 43,718.40 + 524.62 = 44,243.02 Every year, he earns 1.2% more than he earned the previous year. This is compound interest. We could continue calculating it year by year for 6 years, but there is a formula for compound interest. A = P(1 + r/n)^nt where A = total value after adding interest P = original principal value r = interest rate in decimal n = number of times interest is compounded in one year t = number of yerars In this case we are looking for A, and we have P = $43,200 r = 0.012 n = 1 t = 6 A = $43,200(1 + 0.012/1)^(1*6) A = $43,200(1.012)^6 A = $43,200(1.074195) A = $46,405.22

anonymous
 4 years ago
Best ResponseYou've already chosen the best response.0THANK THANK THANK you you you!!!!!!! YOUR THE BEST EVER!!!!!!!!

mathstudent55
 4 years ago
Best ResponseYou've already chosen the best response.2You're welcome. You're not so bad yourself. :) Now go over these problems and try to understand why one is simple interest and the other one is compound interest. The first one, of course, it states that it is simple interest. Try to understand why the second one is compound interest without having been told so.
Ask your own question
Sign UpFind 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
 Engagement 19 Mad Hatter
 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.