SOLUTION: I have no idea what this is saying. Solve the problem. Hope Lewis invested $15,000 in an account that earned $750 in the first year. She did not withdraw any of the original i

Question 414192: I have no idea what this is saying.
Solve the problem.
Hope Lewis invested $15,000 in an account that earned $750 in the first year. She did not withdraw any of the original investment or earnings, but allowed both amounts to continue to earn money at the same rate as the first year. How much money was in the account at the end of the second year?
a. $16,800
b. $16,537.50
c. $16,500
d. $32,287.50
Answer by sudhanshu_kmr(1152) (Show Source): You can put this solution on YOUR website!

It is problem of compound interest ......
as 750 is 5% of 15,000
total amount = 15,000+ 2 * 750 + 750 * 5/100
= 15,000 + 1500 + 37.5
= 16537.50

so, (b) $16,537.50
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