Question

Please im studying and I need help with this question

Answer 1

To answer this question, we will use the following formula for simple interest:

`F=A(1+rt),`

and the following formula for annually compounded interest:

`F=A(1+r)^t,`

where t is the time in years, A is the initial amount, and r is the rate of interest as a decimal.

Substituting A=1600/2=800, r= 0.06, and t=5 in the formula for simple interest, we get:

`F=800(1+0.06*5)\text{.}`

Simplifying the above result, we get.

`F=1040.`

Therefore, after 5 years, she earned:

`1040-800=240.`

Substituting A=1600/2=800, r= 0.05, and t=5 in the formula for compounded interest, we get:

`F=800(1+0.05)^5.`

Simplifying the above result, we get:

`F=1021.03.`

Therefore, after 5 years she will have earned:

`1021.03-800=221.03.`

Therefore, after 5 years she will have a total of:

`461.03.`

dollars.

Answer: $461.03.