Hello,
Her's the problem : Shelly opens up a saving account that has pays simple interest at an annual rate of 0.18%. If she puts in $500 and does not touch it for 10 years ..
1. How much interest will shelly earn on her investment ?
I found : 0.216% = 0.0018 x 10 years
2. How much will be in Shelly's acount at the end of the 10 years period ?
I found : $3825 on her account
Let me know guys !
Thank you :)
+130516 I think you want to know the amount of interest earned after 10 years......this is just :
I = Prt = 500(.0018)(10) = $9
Then....the total amount in her account at the end of ten years = beginning amount plus earned interest = $500 + 9 = $509
NO!!!!!!!, Guest #2. CPhill is right. She will have $500 + 9 =$509.00 at the end of ten years.
Correction:
Assuming she is getting a pathetic 0.18 % annual interest
Her interest over the years is 500 (1. 0018)^10 = $ 1.1081
500 + 1.1081 = 501.11 at the end of ten years
is she reallly getting 0.18% or 1.8 % or 18% ?????
CPHIL is NOT right..... she is only getting 0.18% interest annually. (.0018)
thEYe add the interest to her account at the end of the year and THAT new amount gets interest the following year
500 (1.0018^10) = 1.018 DOLLARS IN INTEREST IN 10 YEARS !!!
GUYS, GUYS!!!!!!!!.LOOK AT THE QUESTION. SHE GETS SIMPLE INTEREST. Which, by definition is NOT componded. When you use 1.0018^10, that's what compouding means!. She earns a pathetic $500 X .0018=.90 cents per year X 10 years=$9.00. Believe me I know, because that was MY JOB!!!.
