OpenStudy (anonymous):

PLEASE HELP!!!! I WILL FAN WHOEVER HELPS: Tucker invested $3500 at 2% interest compounded annually. How much interest will he earn in 3 years? A.$70.00 B. $210.00 C.$214.23 D. \$3714.23

3 years ago
OpenStudy (amistre64):

is just use the compounding formula ...

3 years ago
OpenStudy (amistre64):

$A = P(1+r/n)^{nt}$

3 years ago
OpenStudy (amistre64):

since its compounded annually; or once a year .. n=1 and the rest is relatively self defined

3 years ago
OpenStudy (anonymous):

so D?

3 years ago
OpenStudy (amistre64):

hmm, interest only, so we might want to subtract the original P from it ...

3 years ago
OpenStudy (anonymous):

oh, i thought you can only x it

3 years ago
OpenStudy (amistre64):

3500(1.02)^3 - 3500 3500 [ (1.02)^3 - 1] for only the interest

3 years ago
OpenStudy (anonymous):

the answer is B.

3 years ago
OpenStudy (anonymous):

ok, thanks! :) to everyone who helped me!

3 years ago
OpenStudy (anonymous):

no problem

3 years ago
OpenStudy (amistre64):

D - 3500 is not B

3 years ago
OpenStudy (anonymous):

it is?

3 years ago
OpenStudy (amistre64):

what is 3714 - 3500?

3 years ago
OpenStudy (anonymous):

ummm...

3 years ago
OpenStudy (anonymous):

214

3 years ago
OpenStudy (amistre64):

then the solution will be 214 and some change

3 years ago
OpenStudy (anonymous):

oh, so it's D? right?

3 years ago
OpenStudy (anonymous):

and thanks for explaining! :)

3 years ago
OpenStudy (amistre64):

D is a 'trap'. D assumes you find the total amount (principal + interest). The question only asks for interest so we have to subtract the principal ...

3 years ago
OpenStudy (amistre64):

the solution is 214, which option has 214 is the answer?

3 years ago
OpenStudy (anonymous):

oh

3 years ago
OpenStudy (anonymous):

C?

3 years ago
OpenStudy (amistre64):

then I agree with C :)

3 years ago
OpenStudy (anonymous):

ok!

3 years ago
OpenStudy (anonymous):

thanks!

3 years ago
OpenStudy (amistre64):

god luck

3 years ago
OpenStudy (amistre64):

good luck even lol

3 years ago
OpenStudy (anonymous):

lol thanks!

3 years ago