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mrs_skeptik [129]
3 years ago
12

What is the total interest earned in two years on an account containing $500 at 3.5% interest, compounded annually?

Mathematics
2 answers:
Oxana [17]3 years ago
7 0

Answer: Compound interest is $36.61

Step-by-step explanation:

Initial amount deposited into the account is $500 This means that the principal,

P = 500

It was compounded annually. This means that it was compounded once in a year. So

n = 1

The rate at which the principal was compounded is 3.5%. So

r = 3.5/100 = 0.035

It was compounded for 2 years. So

t = 2

The formula for compound interest is

A = P(1+r/n)^nt

A = total amount in the account at the end of t years. Therefore

A = 500 (1+0.035/1)^1×2

A = 500(1.035)^2 = $535.61

Compound interest = 535.6 - 500 = $35.61

kiruha [24]3 years ago
3 0
$35.
500 x .035 = 17.5 < - 1 year interest
17.5x2 = 35 <- 2 years
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The detailed process of simplification is :

Step-by-step explanation:

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Let x be the number of pounds of the $1.35 beans. The cost of those beans is $1.35 * x, or 1.35x. 
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<span>We know that 120 pounds of the mix sells for $1.15/pound, for a total of 120 * 1.15 = $138. </span>

<span>x + y = 120 </span>
<span>1.35(x) + (1.05)y = 138 </span>

<span>We can rewrite the first as </span>
<span>x = -y + 120 </span>

<span>Now we can substitute (-y + 120) in for (x) in the second equation, because we just proved they're equal. </span>

<span>1.35(x) + 1.05(y) = 138 </span>
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<span>Check: </span>
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Gnoma [55]
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Now, we have 20 out of a number, x. This is because we are claiming that 20 is 8% of a number (if we just reword the question without changing the concept).
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