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Keith_Richards [23]
3 years ago
9

An amount of $4000 is invested. The interest rate is 2%. What is the amount earned in one year ?

Mathematics
1 answer:
nasty-shy [4]3 years ago
6 0
Interest = PRT/100
Compound interest = P(1 + (R/100))^T

Where P = Principle ( amount )
R = Rate
T = Time

Since the time is only 1 year, the answer will be the same for both interest and compound interest formulae.

∴ 4000(2)(1)/100 =$80 (This is the interest value)

Note if question ask you what is the total amount after x years, be sure to add the interest with the principle.
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