SOLUTION: one thousand dollars in a savings account pays 9% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new princi
Algebra.Com
Question 40879: one thousand dollars in a savings account pays 9% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new principle the following year?
Thanks you very much
Answer by rajagopalan(174) (Show Source): You can put this solution on YOUR website!
one thousand dollars in a savings account = p =1000
interest per year=R=9%
N=1
The interest earned after the first year = PNR/100
= 1000*1*9/100= 90
When this is added to the account the new p =1090
interest earned on the new principle the following year = 1090*1*9/100
=98.10
You get 98 dollars & 10 cents as interest for the new principal.
RELATED QUESTIONS
one thousand dollars in a savings account pays 7% interest per year. The interest earned... (answered by Nate)
One thousand dollars in a savings account pays 7% interest per year. The interest earned... (answered by unlockmath)
one thousand dollars in a savings account pays 7% interest per year. The interest earned... (answered by checkley71)
If $100 dollars is deposited in a savings account that pays interest at a rate of 12.5%... (answered by Kbear,MathTherapy)
A man invests $12,000 in two accounts. One account pays 10% per year. The other account... (answered by mananth)
$7500 is in two savings accounts. one account earns 4% interest per year, the other earns (answered by nyc_function)
NEED HELP ASAP PLEASE!!
A savings account starts with $600 and pays 5% interest per... (answered by solver91311)
a women has a total of $12,00 to invest. she invested part of the money in an account... (answered by ikleyn)
A woman has a total of $8,000 to invest. She invests part of the money in an account that (answered by mananth)