An account with a $250 r balance accrues 2% annually. If no deposits or withdrawals are made, what will happen to the interest?
1 answer:
Answer:
As the Principal, increases each year, the value of Interest also rises each year
Step-by-step explanation:
This is a question of compound interest.
The initial Principal amount is 250 dollars.
In Compound Interest, each year the Principal amount gets changed as the interest gets added up into the Principal to form the new Principal.
Also no, money is being deposited or withdrawn so the principal increases via compound interest only.
Formula for compound interest is
A=P
where
A=Amount or the new principal accumulated after n years
P=Initial Principal Amount
r= Rate of Interest compounded annually
n=Number of years
As the Principal, increases each year, the value of Interest also rises each year, see the graph for more information.
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Answer:
Part a)
Part b)
Step-by-step explanation:
Part a) Create a linear equation
Let
t ----> the time in minutes
y ---> the temperature in °F
we know that
The linear equation in slope intercept form is equal to
where
m is the slope or unit rate of the linear equation
b is the y-intercept or initial value of the linear equation
In this problem we have
The slope m is equal to
The y-intercept is
substitute
Part b) How many minutes until the water boils at 212° F?
For y=212° F
substitute in the linear equation and solve for t