Suppose that $5500 is placed in an account that pays 2% interest compounded each year.
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Answer:
Step-by-step explanation:
First, we need to find the common denominator
The easiest way to do this is by multiplying the two given denominators, which are 2 and 5.
2 × 5 = 10
So, our common denominator is 10. Then, multiply the numerators of the two fractions by 2 and 5. Here's why:
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We multiplied the top and bottom by 2 to make sure our new fraction stays equivalent to the original fraction.
Do the same thing for the other one:
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Finally, subtract the two fractions to find the difference between the two times:
=
The reason we used the common denominator is because we can only add or subtract fractions if they have the same denominator.