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Adorkable
Group Title
Compound Interest
You invest $750 at 6% per annum compounded annually.
Determine how much the interest is earned in the first year. Answer :$45
Determine how much more interest is earned in the second year? Please answer and explain.
 one year ago
 one year ago
Adorkable Group Title
Compound Interest You invest $750 at 6% per annum compounded annually. Determine how much the interest is earned in the first year. Answer :$45 Determine how much more interest is earned in the second year? Please answer and explain.
 one year ago
 one year ago

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campbell_st Group TitleBest ResponseYou've already chosen the best response.0
ok, the interest in the 1st year is 6% of $750 so I = 750 * 0.06 for the 2nd year add the interest and principal so I = ( Interest + Principal)* 0.06 hope this makes sense
 one year ago

Adorkable Group TitleBest ResponseYou've already chosen the best response.0
Not making much sense
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.0
You earn $45 in interest in the first year. So you add that to the balance to get 750+45 = 795 This is your new balance going into year 2 You now use the formula I = Prt where P = 795, r = 0.06 and t = 1 to find the interest you earn for year #2
 one year ago
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