Sophie deposited $500 and earned simple interest of 8%. How much money did Sophie have in her account after 2 years? I WILL FAN AND MEDAL

Question

radar · Answer

My understanding of simple interest versus compounded interest that the earned interest from the first year is not added (compounded) to the principal.  This would mean that the interested earned each year is the same.

radar · Answer

In Sphie's case since the interest is 8% her interest earnings for the first year would be calculated like this.  Principal (P) is $500.00 Interest would be P times 8% or .08, this given her an annual interest earning of .08 x $500 = $40.00.  Rmember the question wants to know how much money she has in the bank after two years.

    8 minutes ago

jacob11 · Answer

wats the answer

radar · Answer

Read the last sentence of my first post.
That gives you the answer.  If every years the interest amount is the same, and I gave you the method to solve the interest, plus I calculated the interest for one year, you now know the interest for the second why, because it will be the same as the first year.  Add the two years of interest to the original deposit, you will have it.

jacob11 · Answer

wat do i type in