The compound interest is applied to the remaining balance in the account
each subsequent year.
- The amount that must be deposited is approximately <u>$620.07</u>
Reasons:
The given compound interest rate, r = 6.25% = 0.0625
The balance in the account after 2 years, A = $700
Required:
The required deposit, <em>P</em>, that gives the given account balance after 2 years.
Solution:
The following is the compound interest formula to use;
Where;
t = 2 years
We get;
Which gives;
- The amount that must be deposited to give $700 after 2 years is P ≈ <u>$620.07</u>
Learn more about compound interest here:
brainly.com/question/10028292
So let's say that the first number is xxxxx and the second one is yyyyy.
The value of 7 in the first should be 1000 times bigger than in the second, so let's make it 7000 and 7:
z7xxx and yyyy7
now, the value of 3 in the first number is 100 times the value of the 3 in the second number
let's make it 37xxx - then the value of 3 is 30 000 so in the second number it must be 300,
then we have 37xxx and yy3y7
let's substitute the ys and xs by 0:
37000 and 307 - that's the solution!
So, first step, find out how much more 2500000 is than 250000. 2500000 is 10 times more than 250000. Now, subtract 250000 from 2500000. That would give you <u>2250000</u>. That is the difference of the two amounts of money. Now, to find how many hundred dollar bills. The amount we have now is 2250000. That is in 1-dollar bills. In order to make it into 100 dollar bills, we want to divide by 100. This will cause 2 zeroes to be taken off from 2250000, making the number 22500 hundred dollar bills.
Answer: There are 22500 more hundred-dollar bills in the 2.5 million dollar safe versus the 250 thousand dollar safe in hundred dollar bills.
