Question

I need help ASAP please.

Answer 1

$82.45

$4932.45

$4932.45

$9782.45

$166.30

$9948.75

Explanation:

Since we're computing for two different years with two different principals, we need to compute them separately.

First we start with year 1.

Since the n will be 1 for both years, we can use the formula:

`A=P(1+r)^(t)`

P = 4850

r = 1.7% or 0.017

t = 1

Let's plug in our values to find the Ending balance.

`A=4850(1+0.017)^(1)`

`A=4850(1.017)^(1)`

`A=4850(1.017)`

`A=4932.45`

The new ending balance will be $4932.45.

To find for the amount of interest earned, we simply subtract the ending balance to the new balance.

I = 4932.45 - 4850

I = $82.45

Laura's account earned $82.45 after the first year.

Now for year 2.

Laura's beginning balance will be $4932.45.

Her new balance will be her beginning balance plus the amount deposited.

New balance = $4932.45 + $4850

New balance = $9782.45

Now using her new balance we compute for her ending balance.

P = $9782.45

r = 1.7% or 0.017

t = 1

`A=9782.45(1+0.017)^(1)`

`A=9782.45(1.017)^(1)`

`A=9782.45(1.017)`

`A=9948.75`

Laura's ending balance after the second year is $9948.75.

Now let's compute for her interest.

I = 9948.75 - 9782.45

I = $166.30

Laura's account earned $166.30 after the second year.