SIMPLE AND COMPOUND INTEREST

SIMPLE AND COMPOUND INTEREST


C
Asked by 1 year ago
10 million points

Sania deposited $50,000 in a bank for two years with the interest rate of 5.5% p.a.

a) How much interest would she earn?

b) What will be the final value of investment?

SIMPLE AND
chegendungu

1 Answer

C
Answered by 1 year ago
10 million points

Required interest amount is given by

I=P$\times$ i$\times$ t

$=50,000\times \frac{5.5}{100}\times 2$

$=\$5,500$

A=P(1+it)

$=\$50,000(1+\frac{5.5}{100}\times 2)$

$=\$50,000(1+\frac{11}{100})$

$=\frac{50,000\times 11}{100}$

$=55,500$

OR

A=P+I

$=\$(50,000+5,500)$

$=\$55,500$

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Asked: 1 year ago

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