Hakim deposited $50 in a saving account earning 10% interest, compounded annually . To the nearest cent , how much interest will
he earn in 2 years?
2 answers:
Answer:
$10.50
Step-by-step explanation:
(see attached for reference)
The formula for compound interest is:
A = P [1 + (r/n) ]^(nt)
where
A = Final amount
P = Principal = $50
r = Annual interest rate = 10% = 0.1
n = 1 (because compounded annually)
t = time = 2 years
substituting this into the equation:
A = P [1 + (r/n) ]^(nt)
= 50 [ 1 + (0.1/1) ] ^ [(1)(2)]
= 50 [ 1 + 0.1] ^ 2
= 50 (1.1)²
= $60.50
Interest = Final amount - Principal
=$60.50 - $50.00
= $10.50
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The law of sines states:
The transitive property (switching the orders of the equations) applies here. Therfore, we can say that
We then plug in our given values to find C
Solving, we get 0.8557316387. We're not done yet!
We are trying to find an angle measure, so we'll do the inverse of the ratio we used (sin).
arcsin0.8557316387 (arcsin is the same as inverse sin)
=58.8 (approximate)
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