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anonymous

  • 3 years 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
    • 3 years ago
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    Firstly, what is 5.2 percent of 3600?

  2. anonymous
    • 3 years ago
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    69230.76923

  3. anonymous
    • 3 years 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. anonymous
    • 3 years ago
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    187.2

  5. anonymous
    • 3 years ago
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    What would I do now

  6. terenzreignz
    • 3 years 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. anonymous
    • 3 years ago
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    2 years

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

  9. anonymous
    • 3 years ago
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    just two?

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

  11. anonymous
    • 3 years ago
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    3974.4

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

  13. anonymous
    • 3 years ago
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    Find the amount if $800 is invested at 5% compounded monthly for 10 months

  14. anonymous
    • 3 years ago
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    Find the amount if $800 is invested at 5% compounded monthly for 10 months

  15. terenzreignz
    • 3 years ago
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    What does compounded monthly even mean?

  16. anonymous
    • 3 years ago
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    means you accrue interest every month, and you earn interest on the interest you earn

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

  18. anonymous
    • 3 years 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. anonymous
    • 3 years ago
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    would my "n" variable be 10 in this case? and what would my "T"

  20. anonymous
    • 3 years 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. anonymous
    • 3 years ago
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    Thank you

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