SOLUTION: Tony has P20000 in his savings account.if the rate of interest is 4 1/2 % a year .how much interest does his money earn

Question 1061548: Tony has P20000 in his savings account.if the rate of interest is
4 1/2 % a year .how much interest does his money earn

Answer by math_helper(2461) (Show Source): You can put this solution on YOUR website!
The problem doesn't specify how long the money sits in the savings account. That is important.
Assuming interest is compounded (interest earned in prior years is treated like principal for future years)
After 1 year, he will have so his money earned
After 2 years, he will have so his money has earned

After n years, he will have and his earned interest will be

�
For the simple interest case, he earns the same as year 1 above, but every single year.

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