SOLUTION: one thousand dollars in a savings account pays 9% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new princi
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-> SOLUTION: one thousand dollars in a savings account pays 9% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new princi
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Question 40879: one thousand dollars in a savings account pays 9% interest per year. The interest earned after the first year is added to the account. How much interest is earned on the new principle the following year?
Thanks you very much Answer by rajagopalan(174) (Show Source):
You can put this solution on YOUR website! one thousand dollars in a savings account = p =1000
interest per year=R=9%
N=1
The interest earned after the first year = PNR/100
= 1000*1*9/100= 90
When this is added to the account the new p =1090
interest earned on the new principle the following year = 1090*1*9/100
=98.10
You get 98 dollars & 10 cents as interest for the new principal.
