Question

Maria puts $2,500.00 in her money market account earning 8% interest annually. How much interest and how much money would she have after 7 years?

Answer 1

I = P•R•T I = interest, P= principal (amount invested), T= time, in years

I = (2500) • (0.08) • (7)
I = $1,400

Answer 2

Answer:

At an interest rate of 8% per year Maria will acquire $4,284.56 after 7 years.

Amount of interest = $1784.56

Explanation:

To find the amount of money she would have after 7 years you have to use this equation:

$A = P(1+r)^t$

A = Total amount

P = Initial amount

r = interest rate

t = time

Let's assign each of the numbers in the question

P = $2,500

r = 0.08 (you have to use the decimal form of the percent, to find it you have to move the decimal point over twice)

t = 7 (years)

Now plug them into the equation

$A = 2500(1+0.08)^7$

Solve

$A = 2500(1.08)^7\\A = 4,284.56$

Therefore, at an interest rate of 8% Maria will acquire $4,284.56 after 7 years.

Her interest would be calculated by taking 4,284.56 minus 2500 = 1,784.56

Hope this helps!!

- Kay :)