SOLUTION: Sean deposited $1500 in bank,earning an interest of 3% per year.If he took out 1/3 of the money after 2 years and that the instrest was fixed at 3% each year,how many would he have

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: Sean deposited $1500 in bank,earning an interest of 3% per year.If he took out 1/3 of the money after 2 years and that the instrest was fixed at 3% each year,how many would he have      Log On


   

Question 1197704: Sean deposited $1500 in bank,earning an interest of 3% per year.If he took out 1/3 of the money after 2 years and that the instrest was fixed at 3% each year,how many would he have left in the bank?
Answer by math_tutor2020(3817) About Me  (Show Source):
You can put this solution on YOUR website!

I'm assuming the interest is compounded annually.

P = 1500 = deposit amount
r = 0.03 = decimal form of the 3% annual interest
n = 1 = compounding once per year
t = 2 = number of years

A = P*(1+r/n)^(n*t)
A = 1500*(1+0.03/1)^(1*2)
A = 1500*(1+0.03)^(2)
A = 1500*(1.03)^(2)
A = 1500*1.0609
A = 1591.35

Sean will have $1591.35 in the bank after 2 years.
1/3 of that amount is (1/3)*1591.35 = 530.45 which is the amount he withdraws.
There will be 1591.35 - 530.45 = 1060.90 dollars left in the bank.

Alternative calculation:
(2/3)*1591.35 = 1060.90 dollars
This is because if he takes out 1/3 of the money, then 1-(1/3) = 2/3 of it remains.