Question 1124818: Vanessa invested $10,000 at 2% simple annual interest for 2 years. At the end of the 2 years, she took her principal and interest and invested it at 5% simple annual interest for 3.5 years. What is the total amount she has at the end of the 5.5 years?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! simple interest is based on the original principal.
the formula is i = p * r * n
i is the interest
p is the principal
r is the interest rate per time period.
n is the number of time periods.
she invest 10,000 at 2% for 2 years.
the interest is 10,000 * .02 * 2 = 200 * 2 = 400.
she then added the interest to the principal to get 10,400 and invested that at 5% for 3.5 years.
the interest on that investment is 10,400 * .05 * 3.5 = 1820.
she added that to the principal to get 10,400 + 1820 = 12,220.
that's what she had at the end of the 5.5 year investment period.
|
|
|
