Math questions..?

Question

A bank customer wants to open a bank account. She wants to know what her interest will be over a certain time period. Her principal that she deposits is $2,000 and the banks interest rate is 5 %. Using the formula i = prt, - you can tell her. How much interest will sher make in 5 years?

( Covert 5% to r=.05 when using it in this formual )

Answer 1

This question has one important component missing. That is the accrual period. This is the timeframe over which interest is accumulated. Each bank has their own rules for this, but the normal period is about 30 days or one month.

Considering this important information is missing then an assumption that it should be disregarded is necessary.

If you don't have it you can't use it.

normally you would have to make a separate calculation for each accrual period then use the new balance for the next calculation.

This is not necessary here. You just use:

P x I x T=
$2000 x .05 x 5=$500

Realistically this question does not reflect normal banking practices.

Answer 2

i = prt
p = 2000
r = .05
t = 5
i = 2000 * .05 * 5
i = 2000 * .25
i = 2000 /4
i = 500

She will make $500 interest, according to the formula given of i=prt.

Answer 3

Let i = interest (in dollars)
Let p = $2000 (principal in dollars)
Let r = 5% = 5/100 = .05 (rate in %)
Let t = 5 years (time)

i = prt
i = (2000)(.05)(5)
i = (2000)(.25)
i = 500 dollars

Answer 4

You have the formula and all the numbers. All you need to solve this is a calculator or a pencil and paper. This section is for "Homework Help" not "Homework-Do Mine." DO YOUR OWN HOMEWORK!!!

Answer 5

i=2000 * .05 *5

500 dollars

Answer 6

If you know everything, why are you asking this here? You even reminded us to convert percent into a decimal.

Answer 7

i = prt
i = 2000*0.5*5
i = 5000

Answer 8

1st yr .05*2000
2nd yr .05*((.05*2000)+2000)
etc.