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Romashka-Z-Leto [24]
2 years ago
14

Need help asap important! thanks so much!

Mathematics
1 answer:
a_sh-v [17]2 years ago
8 0

Answer:

You would have $343.37 at the end of the 2 years.

Step-by-step explanation:

Interest earned is like bonus money the bank pays you just for keeping money

\mathrm{Compund\:Interest\:Formula}:\quad A =  P {  \left( 1+ \dfrac{ r  }{ n  }    \right)    }^{ nt  }

P: the starting balance of the account (also called initial deposit, or principal)

A: the new balance in the account after N years.

t: the number of years or time

r: the interest rate, (in decimal form)

n: the number of times the interest is compounded each year.

Annually = each year = 1

P =$300, r = 7%, t = 2, n = 1, A = ?

Substitute the numbers into the "Compound Interest Formula".

A =  300 {  \left( 1+ \dfrac{ 0.07  }{ 1  }    \right)    }^{ 1 \times  2  }

\mathrm{Anything\:divided\:by\:1\:gives\:itself}

A =  300 {  \left( 1+0.07  \right)    }^{ 1 \times  2  }

\mathrm{Add\:1\:and\:0.07\:to\:get\:1.07}

A =  300 \times   { 1.07  }^{ 1 \times  2  }

\mathrm{Multiply\:1\:and\:2\:to\:get\:2}

A =  300 \times   { 1.07  }^{ 2  }

\mathrm{Calculate\:1.07\:to\:the\:power\:of\:2\:and\:get\:1.1449}

A =  300 \times  1.1449

\mathrm{Multiply\:300\:and\:1.1449\:to\:get\:343.47}

A =  343.47

So you would have $343.37 at the end of the 2 years.

Look at the chart

\mathrm{Year}\quad \mathrm{Year\: Interest}\quad \mathrm{Total\:Interest}\quad \mathrm{Balance}\\\quad1\quad\quad\quad $21.00\quad\quad\quad\quad $21.00\quad\quad\quad\quad $321.00\\\quad2\quad\quad\quad $22.47\quad\quad\quad\quad $43.47\quad\quad\quad\quad $343.47

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