SOLUTION: You put $4,750 into a bank paying 1.4% simple interest per year. Suppose you don't take anything out of the account. How much do you have after two years? Thank you, Shelle

Algebra ->  Algebra  -> Expressions-with-variables -> SOLUTION: You put $4,750 into a bank paying 1.4% simple interest per year. Suppose you don't take anything out of the account. How much do you have after two years? Thank you, Shelle      Log On

Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations!
Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!

   

Question 329985: You put $4,750 into a bank paying 1.4% simple interest per year. Suppose you don't take anything out of the account. How much do you have after two years?
Thank you,
Shelley
Answer by nerdybill(7008) About Me  (Show Source):
You can put this solution on YOUR website!
You put $4,750 into a bank paying 1.4% simple interest per year. Suppose you don't take anything out of the account. How much do you have after two years?
.
M = P( 1 + i )^n
.
M is the final amount including the principal
P is the principal amount
i is the rate of interest per year
n is the number of years invested
.
In your case:
P is 4750
i is .014
n i2 2
.
Plugging in our values into:
M = P( 1 + i )^n
M = 4750(1 + .014 )^2
M = 4750(1.014)^2
M = 4750(1.028196)
M = $4883.93