Question

Enter your answer and show all the steps that you use to solve this problem in the space provided.

Answer 1

Answer:

1.  $4,960

2.  $320

3.  $120

Step-by-step explanation:

given:

savings account or the Principal = $4,000

interest earned in 3 years = $960

find:

1.  How much does she have in her account at the end of 3 years?

2. at what annual simple interest rate did the account grow?

3. How many more dollars would she have in her account if the interest rate were 1% greater?

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solution:

1.  P + I = total in 3 years

=  $4,000 + $960

=  $4,960

2. Annual simple interest:   I = P r t

where

I = interest = $960

P = Principal = $4,000

r = rate

plugin values into the formula:

$960 = $4,000 ( r ) 1 year

r = 0.08  ( 8 % )

so the annual simple interest = $4,000 ( 0.08 ) 1

annual simple interest   = $ 320

3.  8% rate + 1% = 9%;    I = P r t

I = $4,000 ( 0.09 )3

I = $1080

so the difference = $1080 - $960

                        = $120

Answer 2

Answer:

40 $

Step-by-step explanation:

1). 4000 + 960 = 4960 dollars - this is the answer for the first question

2). 960 / 4000 = 0.24 - this means the intrest rate was 24 %

3). 24 % + 1 % = 25 %

4) 0.25 * 4000 = 1000 - this is would be the intrest rate at 25 %

5) 1000 -960 = 40 dollars - she would have earned 40 more dollars with a

                                                                                                     25 % interest.

Hope this helps!)))