SOLUTION: Your favorite aunt put money into a savings account for you. The account earns simple interest; that is, it increases by a fixed amount each year. After 2 years your account has $8
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Question 908727: Your favorite aunt put money into a savings account for you. The account earns simple interest; that is, it increases by a fixed amount each year. After 2 years your account has $8250 and after 5 years it has $9375.
The question asks to construct an equation and find the initial principal.
we have been using the formula is Y= M(x)+b. i do not understand what to use or how to find the equation. Answer by josmiceli(19441) (Show Source):
You can put this solution on YOUR website! I'll use my own symbols- you can
convert them to the ones you use
Let = the principal
Let = the simple interest earned each year
I can say:
After 2 yrs:
(1)
After 5 yrs:
(2)
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This is 2 equations and 2 unkowns,
so it is solvable
Subtract (1) from (2)
(2)
(1)
----------------
And
(1)
(1)
(1)
(1)
The principal was $7,500
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The rate of simple annual interest is: or 5%
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I think the equation they want is:
Where = the amount you have
in the account after years
For instance:
After years:
OK
