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A bank pays interest of 11%. Mr. Olsen puts $5000in the bank.How much has he afterOne year Two yearThree year |
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Answer» Answer: SIMPLE INTEREST $5550, 6100, 6650 COMPOUND INTEREST $5550, 6160.50, 6838.16 Step-by-step explanation: As you have not mentioned whether interest is simple or compound, I have SOLVED for both. You can choose the correct one. SIMPLE INTEREST SI=PRT/100 SI1=5000 x 11 x 1/100 =550 A1= P + SI1 = 5000 + 550 = 5550 SI2 = 5000 x 11 x 2/100 =1100 A2=5000 + 1100 = 6100 SI3 = 5000 x 11 x 3/100 = 1650 A3= 5000 + 1650 = 6650 COMPOUND INTEREST R=11%, P = 5000, n= 1, 2 & 3 A=P(1+R/100)^n A1=5000(1+11/100)^1 = 5000x1.11 = 5550 TWO years A2=5000(1+11/100)^2 =5000 x 1.2321 = 6160.50 THREE years A3=5000(1+11/100)^3 =5000 x 1.367631 = 6838.155 ≈6838.16 |
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