Subtract using a number line.
2 answers:
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Answer:
1. c. $450.
2. 22%
Step-by-step explanation:
1. We will use simple interest formula to find the amount of interest after 2 years on $5,000. As interest is not compounded, so it will not matter if she moves the simple interest earned in separate account or not.
, where,
I= Amount of interest.
P= Principal amount.
r= Interest rate in decimal form.
t= Time in years.
Upon substituting our given values in above formula we will get,
Therefore, Tracy will get an amount of $450 as simple interest after 2 years and option c is the correct choice.
2. Sylvia bought a 6-month $1900 certificate of deposit. At the end of 6 months, she received a $209 simple interest.
6 months is same as 1/2 year.
Upon substituting our given values in above formula we will get,
Since interest rate is in decimal form, let us convert it in percent.
Therefore, interest rate of certificate of deposit was 22%.