Question

1. James deposits $100 into a bank account that earns an annual interest rate of 4 percent. If he

Answer 1

Answer:

Compound interest is interest computed on the original principal as well as on any accumulated interest.

If you deposit P dollars at rate r, in decimal form, subject to compound interest, then the amount, A, of money in the account after t years is given by

                                                     

The amount A is called the account's future value and the principal P is called its present value.

From the information given we know that $500 is the present value,  6% is the rate, and we want to find how long will it take for Suzy to earn at least $95, this means when the future value is $595.

Applying the above formula and solving for t we get that:

Step-by-step explanation: