Question

Cathy makes a deposit of 3600 dollars on June 1, 1997. How much is in the account on June 1, 1999, if the account pays 5.2 percent simple interest?

Answer 1

Firstly, what is 5.2 percent of 3600?

Answer 2

69230.76923

Answer 3

Remember that 5.2 is a percent, so when you multiply it, you wouldn't multiply 3600 by 5.2 but rather .052 because 5.2 is equivalent to 520%

Answer 4

187.2

Answer 5

What would I do now

Answer 6

Okay, this is the interest per year, and this is added to the amount 3600 for every year that passes... so from 1997 to 1999, how many years have passed?

Answer 7

2 years

Answer 8

Good, so how many times to you add 187.2 to the 3600?

Answer 9

just two?

Answer 10

Just twice, yes.
So, after two years, the amount in the account is...?

Answer 11

3974.4

Answer 12

3974.40, since it's money ;)

But correct.
Well done ^_^

Answer 13

Find the amount if $800 is invested at 5% compounded monthly for 10 months

Answer 14

Find the amount if $800 is invested at 5% compounded monthly for 10 months

Answer 15

What does compounded monthly even mean?

Answer 16

means you accrue interest every month, and you earn interest on the interest you earn

Answer 17

You can use the compound interest formula for this which is
A = P(1+r/n)^nt

Answer 18

P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

Answer 19

would my "n" variable be 10 in this case? and what would my "T"

Answer 20

I believe that your n should be 12 because there are 12 months in a year but I'm not all too familiar with using this formula, your t is 10 because you want to know the balance after 10 months, you can check here: http://qrc.depaul.edu/studyguide2009/notes/savings%20accounts/compound%20interest.htm to help you, it's a great reference and example

Answer 21

Thank you