Question 870608: Rueben deposits into an account that pays simple interest at a rate of per year. How much interest will he be paid in the first years?
Answer by JulietG(1812)   (Show Source):
You can put this solution on YOUR website! What is the interest rate? And how much did he deposit?
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Let's say he deposited $8,500 at 6.5% simple interest.
In the first year, he will make 8500 * .065 in interest, or $552.50
In the second year, he will make (8500+552.5)*.065, or $588.41
In the third year, he will make (8500+552.5+588.41)*.065, or $626.66
and so on. The interest compounds so each year he makes interest on the interest.
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If this doesn't make sense, please add in the numbers and resubmit.
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