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Effectus [21]
2 years ago
12

Darryl deposits $1,500 into a savings account that has a simple interest rate of 2. 7%. Lori deposits $1,400 into a savings acco

unt that has a simple interest rate of 3. 8%. If no other transactions are made, who will have more money in their account after 10 years? How much more?.
Business
1 answer:
Ira Lisetskai [31]2 years ago
8 0
Lori will make $27.00 more.
Step-by-step explanation:
The formula to calculate simple interest is
A = P(1+rt)
P = Principal amount
r = rate of interest ( in decimal )
t = time
First we calculate Darryl's deposit, so put the values in the formula
A = 1,500(1 + 0.027×10)
A = 1,500 ( 1+0.27 )
A = 1,500 × 1.27
A = $1905
Now we will calculate Lori's deposit
A = 1,400 ( 1 + 0.038 × 10 )
A = 1,400 ( 1 + 0.38 )
A = 1,400 × 1.38
A = $1,932
Lori will make money after 10 years = $1,932
Darryl will make money after 10 years = $1905
so Lori will make more than Darryl, the difference will be = 1,932 - 1,905 = $27
After 10 years Lori will have make $27.00 more in their account.
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Based on the interest rate, the cost of the bike, and the period of payment, Samatha will pay $721.71.

<h3>What will Samatha pay?</h3>

Samatha will pay a certain amount monthly. That amount can be found as:

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Solving gives:

700 = Amount x ( 1 - (1 + 2.95%/12) ⁻²⁴ / 2.95%/12 months)

Amount = 700 /  ( 1 - (1 + 2.95%/12) ⁻²⁴ / 2.95%12 months)

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Total amount paid by Samatha:

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