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Ivan
3 years ago
7

If you deposit $400 into an account that offers a 5% interest rate. How much interest will you earn after 1 year?

Mathematics
1 answer:
RideAnS [48]3 years ago
3 0

Answer: The answer is $20

Multiply 400 by .05 or 5%.

If you wanna know 6 years it would be 536 usd

Explanation:

This would be an compound interest. Meaning that your gain every year would increase exponentially.

The equation to calculate this would be: Kn = K0⋅

(1+p100)n Kn is your savings after the period nK0 is your starting deposit p is the percentage n is the period of interest for your example we would have.

Kn=400⋅

(1+5100)6

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