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solniwko [45]
3 years ago
13

Using the formula in model 1, choose the correct answers for the total amount and amount of interest earned in the following com

pound interest problem.
$850 at 2% for 9 years, compounded annually.

Total Amount = $
Interest Amount =$
Mathematics
1 answer:
DIA [1.3K]3 years ago
7 0

The total amount is $ 1015.82 and interest amount is $ 165.82

<em><u>Solution:</u></em>

<em><u>The formula for amount when interest is compounded annually is:</u></em>

\mathrm{A}=P\left(1+r}\right)^{n}

Where,

"A" is the total amount

"P" is the principal

"r" is the rate of interest in decimal form

"n" is the number of years

<em><u>From given, $850 at 2% for 9 years, compounded annually</u></em>

P = 850

t = 9 years

r = 2 \% = \frac{2}{100} = 0.02

<em><u>Substituting the given values we get,</u></em>

A = 850(1+0.02)^9\\\\A = 850 \times 1.02^9\\\\A = 850 \times 1.1950\\\\A = 1015.82

Thus total amount is $ 1015.82

Interest amount = Total amount - principal

Interest amount = 1015.82 - 850

Interest amount = 165.82

Thus total amount earned is $ 1015.82 and interest amount is $ 165.82

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<u><em /></u>

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