A bank customer wants to open a bank account. She wants to know what her intrest will be over a certain (t) time period. Her (p) principle that she deposits is $2,000 and the bank's intrest (r) rate is 5%. Using the forumula i = prt,- you can tell her. How much (i) intrest will she make in 5 years? (convert 5% to r= .05 when using it in this formula
plz help show all ur work
2006-08-02 04:16:53 · 14 answers · asked by joe c 2 in Science & Mathematics ➔ Mathematics
To answer this type question, you use the following formula:
(1 + x) ^ n
where x is the interest rate, and n is the number of period.
So, in your case, the amount of money you get after 5 years is
(1 + 0.05) ^ 5 * 2000 = 1.27628 * 2000 = 2552.56
So you get $552.56 as interest.
This is not the money you will actually get in most bank though. There, the interst is accumulated every month. So assume the monthly interest is APY / 12, then MPY = APY/12= 0.4167%. Then the amount of money you get is
(1 + 0.004167)^60 * 2000 = 2566.72
So you get a little bit more as interest.
2006-08-02 05:03:51 · answer #1 · answered by Stanyan 3 · 0⤊ 0⤋
need to know if the interest is paid monthly (as is common for a savings account) or once a year. if paid monthly, she'll make more due to the compounding effect than if paid annually.
if paid annually:
i=prt
i=2000*.05*1
i=100 (first year)
i=2100*.05*1
i=105 (second year)
i=2205*.05*1
i=110 (third year)
i=2315*.05*1
i=116 (fourth year)
i=2431*.05*1
i=122 (fifth year)
added together equals 553
if paid only once after 5 years, it's:
i=prt
i=2000*.05*5
i=500
2006-08-02 04:28:30 · answer #2 · answered by dwalkercpa 5 · 0⤊ 0⤋
$500
2006-08-02 04:21:38 · answer #3 · answered by Ravi 3 · 0⤊ 0⤋
i=prt
i=$2000*.05/yr(5% interst per year)*5yrs - assuming the intrest is simple and accumulate annually
i=$100/yr*5yrs
i=$500
2006-08-02 04:22:37 · answer #4 · answered by smartypantsmbcanada 3 · 0⤊ 0⤋
Klo-Jann:
i = prt
Substitute p=2000, r=0.05, t=5
i= 2000 * 0.05 * 5
i= 2000 * 0.25
i= 2000 / 4
i= 500
.'. She will make $500 interest in 5 years.
2006-08-02 04:25:26 · answer #5 · answered by Adrienne 6 · 0⤊ 0⤋
i=prt
i=2000 * 0.05 * 5
i=500
2006-08-02 04:20:58 · answer #6 · answered by MDPeterson42 3 · 0⤊ 0⤋
I = PRT
I = 2000 * .05 * 5
I = $500
ANS : $500
2006-08-02 04:51:57 · answer #7 · answered by Sherman81 6 · 0⤊ 0⤋
i = p r t
I = (2,000) (.05) (5)
i = (100) (5)
i = 500
2006-08-02 04:22:04 · answer #8 · answered by Imoet 2 · 0⤊ 0⤋
i=prt
p=2000
r=0.5
t=5
i=?
i=2000(0.5)(5)
i=5000
That's what I got. I'm not sure if it's right, but if it's not, I don't know where I would have messed up...
2006-08-02 04:24:04 · answer #9 · answered by MrMarblesTI 4 · 0⤊ 0⤋
i=2000 * .05 * 5
i=500
happy?
2006-08-02 04:21:58 · answer #10 · answered by Michael J with wings 3 · 0⤊ 0⤋