Time remaining:
simple and compound interest

Mathematics
Tutor: None Selected Time limit: 1 Day

rashawn puts $550 in an account earning 8% simple interest annually.How much will he have in his account after 6 years

Mar 26th, 2015

If it is simple interest, in 6 years he will earn P*r*T = 550 * 0.08 * 6 = $264.

Add the the principal P = 550: 550 + 264 = 814

Answer: $814.

Note: If the interest is compounded yearly, then he will have P*(1+r)^6 = 550 * 1.08^6 = $872.78 in his account.

Mar 25th, 2015

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Mar 26th, 2015
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