Quantcast

Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

starrhunter Group Title

1. Julia deposited $250 in a savings account that earns 2.7% simple interest. How much interest has Julia earned by the end of the first year? $6.75 $92.59 $256.75 $675.00 2. Armand deposited $389.42 in a savings account that earns 3.2% simple interest. What is Armand’s account balance after seven years? $87.23 $401.88 $476.65 $872.30 3. Andy deposited $1,567.12 in a savings account that earns 1.9% simple interest. What will Andy’s account balance be in nine months? $1,567.12 $1,589.45 $1,596.90 $1,835.10

  • one year ago
  • one year ago

  • This Question is Closed
  1. whpalmer4 Group Title
    Best Response
    You've already chosen the best response.
    Medals 0

    Interest earned with simple interest is just PV * i * t where PV is present value (the balance at the start of the problem), i is the interest rate expressed as a decimal (so divide the percentage by 100, 2.3% = 2.3/100 = 0.023), and t is the number of years (be sure to convert to years if you get something else). To find a future balance (FV), FV = PV + PV*i*t 1. PV = $250, i = 2.7% = 0.027, t = 1 interest earned = PV*i*t = $250*0.027*1 = $6.75 Easy, right? 2. PV = $389.42, i = 3.2% = 0.032, t = 7 Here we want to find the FV, not the interest earned FV = PV + PV*i*t = $389.42 + $389.42*0.032*t = 3. PV = $1,567.12, i = 1.9% = 0.019, t = 9 months = 9/12 = 0.75 Note that we had to convert months into years — the answer would be very incorrect if you did not do so! Here we are finding the FV FV = PV + PV*i*t = $1,567.12 + $1,567.12*0.019*0.75 = You have to read these problems carefully to make sure you find the right quantity!

    • one year ago
    • Attachments:

See more questions >>>

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.