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jadeleeper

  • one year ago

Cathy makes a deposit of 3600 dollars on June 1, 1997. How much is in the account on June 1, 1999, if the account pays 5.2 percent simple interest?

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  1. terenzreignz
    • one year ago
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    Firstly, what is 5.2 percent of 3600?

  2. jadeleeper
    • one year ago
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    69230.76923

  3. Shirobara
    • one year ago
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    Remember that 5.2 is a percent, so when you multiply it, you wouldn't multiply 3600 by 5.2 but rather .052 because 5.2 is equivalent to 520%

  4. jadeleeper
    • one year ago
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    187.2

  5. jadeleeper
    • one year ago
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    What would I do now

  6. terenzreignz
    • one year ago
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    Okay, this is the interest per year, and this is added to the amount 3600 for every year that passes... so from 1997 to 1999, how many years have passed?

  7. jadeleeper
    • one year ago
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    2 years

  8. terenzreignz
    • one year ago
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    Good, so how many times to you add 187.2 to the 3600?

  9. jadeleeper
    • one year ago
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    just two?

  10. terenzreignz
    • one year ago
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    Just twice, yes. So, after two years, the amount in the account is...?

  11. jadeleeper
    • one year ago
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    3974.4

  12. terenzreignz
    • one year ago
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    3974.40, since it's money ;) But correct. Well done ^_^

  13. jadeleeper
    • one year ago
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    Find the amount if $800 is invested at 5% compounded monthly for 10 months

  14. jadeleeper
    • one year ago
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    Find the amount if $800 is invested at 5% compounded monthly for 10 months

  15. terenzreignz
    • one year ago
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    What does compounded monthly even mean?

  16. jadeleeper
    • one year ago
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    means you accrue interest every month, and you earn interest on the interest you earn

  17. Shirobara
    • one year ago
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    You can use the compound interest formula for this which is A = P(1+r/n)^nt

  18. Shirobara
    • one year ago
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    P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest. n = number of times the interest is compounded per year

  19. jadeleeper
    • one year ago
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    would my "n" variable be 10 in this case? and what would my "T"

  20. Shirobara
    • one year ago
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    I believe that your n should be 12 because there are 12 months in a year but I'm not all too familiar with using this formula, your t is 10 because you want to know the balance after 10 months, you can check here: http://qrc.depaul.edu/studyguide2009/notes/savings%20accounts/compound%20interest.htm to help you, it's a great reference and example

  21. jadeleeper
    • one year ago
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    Thank you

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