The total amount accrued, principal plus interest, with compound interest on a principal of $5,000.00 at a rate of 7% per year compounded 1 times per year over 5 years is $7,012.76.
Okay, so the answer is 5/9. “Someone” was correct. The subtracting of 100 from 225 came from the 100 already being used out of that 225. If you subtract that, you’re left with how much space left. Place those back into the fraction and simplify and you get our answer.
