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Karolina [17]
3 years ago
12

You are 10 years old and have $500 to put in the bank to save for college. You will earn 5% simple interest rate. If you leave i

t in the bank for 10 years, what will be the balance?
Mathematics
1 answer:
pashok25 [27]3 years ago
5 0

Answer:

$814.48

Step-by-step explanation:

Use the formula for simple interest: B=P(1+r)^t

Plug in values: B=500(1+.05)^10

Evaluate: B=814.48

So the balance after 10 years will be around $814.48

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Graph:

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When fully solved: the answer is:
y = -3/2 x + 8

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4 years ago
Jose received $250 for his birthday from his family. He wishes to buy a motorcycle and decides to use his birthday money towards
BartSMP [9]

Answer:

He will have $276.10 available towards the down payment for his motorcycle

Step-by-step explanation:

The compound interest formula is given by:

A = P(1 + \frac{r}{n})^{nt}

Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.

In this problem, we have that:

P = 250, t = 2, r = 0.05

Compounded quarterly, so n = 12/4 = 3.

We have to find A.

A = P(1 + \frac{r}{n})^{nt}

A = 250(1 + \frac{0.05}{3})^{3*2}

A = 276.1

He will have $276.10 available towards the down payment for his motorcycle

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3 years ago
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