7th grade, Math help~ ASAP.

Question

anonymous · Answer

Evergreen bank offers 5% simple interest on deposits. Pot O' Gold bank offers 4% interest compounded annually. Patrick deposited $2000 into each bank to remain 3 years.


A. Find the final balance at Evergreen Bank. Show All Your Work.


B. Find the final balance at Pot O' Gold Bank. Show All Your Work.

C State the difference in the final balances. Show All Your Work.

anonymous · Answer

For simple interest, the formula is $$I=PRT/100 $$
where P= Present value
          R= Interest rate
          T= Time ( no. of years) 
          I= Interest 

So, for Evergreen Bank, the interest would be $$I=( 2000\times5\times3)/100= $300$$
The final balance would be 2000+300=$2300

anonymous · Answer

For compound interest, the formula is, 
$$FV= P \times (1+r)^{n}$$
here FV= Future value
        P= Present value
        r= Annual interest rate ( as a decimal) 
        n= no. of years

So, for Pot O' Gold bank,  the final balance would be: 
$$FV= 2000\times(1+0.04)^{3}= $2249.728$$

anonymous · Answer

If you do not get the above formula, I can explain in another way?

anonymous · Answer

I get it . It's clear.

anonymous · Answer

Okay. For C, just subtracting the two final balances would give you the difference.

anonymous · Answer

that would be $50.278 ?

anonymous · Answer

No. $50.272.