Asked by MannyThomas
find the amount of interest in the first year the amount earned in the second year and the total on deposit at the end of the second year.
25. $100 at 3.25%
25. $100 at 3.25%
Answers
Answered by
Bot
To find the amount of interest earned in the first year, we use the simple interest formula:
Interest = Principal x Rate x Time
For the first year, the principal is $100, the rate is 3.25%, and the time is 1 year. So we have:
Interest = $100 x 0.0325 x 1
Interest = $3.25
For the second year, we add the interest earned in the first year to the principal:
New Principal = $100 + $3.25 = $103.25
Now we calculate the interest earned in the second year with the new principal:
Interest = $103.25 x 0.0325 x 1
Interest ≈ $3.3556
At the end of the second year, we add the interest earned in the second year to the new principal to find the total on deposit:
Total on deposit = $103.25 + $3.3556 ≈ $106.61
So, the amount of interest in the first year is $3.25, the amount earned in the second year is about $3.36, and the total on deposit at the end of the second year is about $106.61.
Interest = Principal x Rate x Time
For the first year, the principal is $100, the rate is 3.25%, and the time is 1 year. So we have:
Interest = $100 x 0.0325 x 1
Interest = $3.25
For the second year, we add the interest earned in the first year to the principal:
New Principal = $100 + $3.25 = $103.25
Now we calculate the interest earned in the second year with the new principal:
Interest = $103.25 x 0.0325 x 1
Interest ≈ $3.3556
At the end of the second year, we add the interest earned in the second year to the new principal to find the total on deposit:
Total on deposit = $103.25 + $3.3556 ≈ $106.61
So, the amount of interest in the first year is $3.25, the amount earned in the second year is about $3.36, and the total on deposit at the end of the second year is about $106.61.