The principal represents an amount of money deposited in a savings account subject to
1 answer:
Compound interest is the adding of interest to the principle sum of a loan or deposit. The amount of money in the account after 2 years is $7426.30, while the interest earned in 2 years is $426.30.
<h3>What is compound interest?</h3>Interest on interest, or compound interest, is the adding of interest to the principle sum of a loan or deposit. It's the outcome of reinvesting interest rather than paying it out, so that interest is received on the principal plus previously collected interest in the next quarter.,
where A is the final amount
P is the principal amount
r is the rate of interest
n is the number of times interest is charged in a year
t is the number of years
Given the principal amount is $7,000 while the rate of interest is 3% which is compounded annually.
A. The amount of money in the account after 2 years will be,
A = $7000(1 + 0.03)² = $7426.30
B. The amount of interest earned is will be,
The amount of interest earned = $7426.30 - $7000 = $426.30
Hence, the amount of money in the account after 2 years is $7426.30, while the interest earned in 2 years is $426.30.
Learn more about Compound Interest:
#SPJ1
You might be interested in
Answer:
Image 1
Step-by-step explanation:
To answer this question, we need to know how to use a box plot.
I've attached an image that demonstrates this well and can teach you what each part of the box plot means.
Specifically, the 2 farthest dots at the end are the minimum and maximum. The two sides where the box starts are the lower and upper quartiles. Finally, the line in the middle of the box is the median.
With this, we can analyze each box plot and determine which one is correct.
<em><u>Box Plot 1: </u></em><em>Everything is plotted correctly- Maximum and minimum plotted correctly, median plotted correctly, upper and lower quartile plotted correctly.</em>
<u>Box Plot 2:</u> Everything plotted correctly EXCEPT maximum of 48 is represented at 46.
<u>Box Plot 3:</u> Everything plotted correctly EXCEPT the upper quartile of 45 is at 39.
<u>Box Plot 4:</u> Upper quartile represented at 39 and maximum represented at 46 are both incorrect.
