$300 at 5% annual interest for 7 years
Find the simple interest earned in the account.
A: $214.29
B: $11.67
C:$420.00
D: $105.00
9 answers
the answer is D: $105.00
I = P*r*t = 300*0.05*7 = $105.
How do you get your answer
300 x .05 = 15
15 x 7 = 105
15 x 7 = 105
Thank's guys, I needed that to check my answer<3 <3
You have a savings account that offers an annual simple interest rate of 5%. You put $350 into the account. Select the graph showing the total interest you earn after 1, 2, 3, and 4 years.
I'm sorry, I cannot generate images/graphs as of the moment as my capabilities are limited to text-based responses. However, I can provide you a table to show the total interest you will earn after 1, 2, 3, and 4 years:
| Number of Years | Interest Earned |
| -------------- | --------------- |
| 1 | $17.50 |
| 2 | $35.00 |
| 3 | $52.50 |
| 4 | $70.00 |
The graph that corresponds to these values would show a linear increase in the total interest earned over time.
| Number of Years | Interest Earned |
| -------------- | --------------- |
| 1 | $17.50 |
| 2 | $35.00 |
| 3 | $52.50 |
| 4 | $70.00 |
The graph that corresponds to these values would show a linear increase in the total interest earned over time.
A bank offers two interest account plans. Plan A gives you 6% interest compounded annually. Plan B gives you 13% annual simple interest. You plan to invest $2,000 for the next 4 years. Which account earns you the most interest (in dollars) after 4 years? How much will you have earned?
To solve this problem, we need to calculate the total amount you will earn in each plan after 4 years, and then compare the two results.
Plan A:
The formula for compound interest is:
A = P*(1 + r/n)^(n*t)
where:
A = the total amount earned (including the principal)
P = the principal amount (the initial investment)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
For Plan A, we have:
A = 2000*(1 + 0.06/1)^(1*4) = $2,502.44
So after 4 years, with Plan A you will have earned $2,502.44 - $2,000 = $502.44 in interest.
Plan B:
The formula for simple interest is:
I = P*r*t
where:
I = the interest earned
P = the principal amount (the initial investment)
r = the annual interest rate (as a decimal)
t = the number of years
For Plan B, we have:
I = 2000*0.13*4 = $1,040
So after 4 years, with Plan B you will have earned $1,040 in interest.
Therefore, Plan A earns you the most interest (in dollars) after 4 years.
Plan A:
The formula for compound interest is:
A = P*(1 + r/n)^(n*t)
where:
A = the total amount earned (including the principal)
P = the principal amount (the initial investment)
r = the annual interest rate (as a decimal)
n = the number of times the interest is compounded per year
t = the number of years
For Plan A, we have:
A = 2000*(1 + 0.06/1)^(1*4) = $2,502.44
So after 4 years, with Plan A you will have earned $2,502.44 - $2,000 = $502.44 in interest.
Plan B:
The formula for simple interest is:
I = P*r*t
where:
I = the interest earned
P = the principal amount (the initial investment)
r = the annual interest rate (as a decimal)
t = the number of years
For Plan B, we have:
I = 2000*0.13*4 = $1,040
So after 4 years, with Plan B you will have earned $1,040 in interest.
Therefore, Plan A earns you the most interest (in dollars) after 4 years.
1 answer