document.write( "Question 1061548: Tony has P20000 in his savings account.if the rate of interest is
\n" ); document.write( " 4 1/2 % a year .how much interest does his money earn
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Algebra.Com's Answer #676321 by math_helper(2461) $\"\"$ $\"About$

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The problem doesn't specify how long the money sits in the savings account. That is important.\r
\n" ); document.write( "\n" ); document.write( "Assuming interest is compounded (interest earned in prior years is treated like principal for future years)\r
\n" ); document.write( "\n" ); document.write( "After 1 year, he will have $\"+P20000%281%2B0.045%29+=+P20900+\"$ so his money earned $\"+P900\"$
\n" ); document.write( "After 2 years, he will have $\"+P20000%281%2B0.045%29%5E2+=+P21840.50\"$ so his money has earned $\"+P1840.50\"$
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\n" ); document.write( "After n years, he will have $\"+P20000%281%2B0.045%29%5En+\"$ and his earned interest will be
\n" ); document.write( " $\"+P20000%28%281%2B0.045%29%5En+-+1%29+\"$
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\n" ); document.write( "\n" ); document.write( "For the simple interest case, he earns the same as year 1 above, but every single year.\r
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