Question

jim is saving for college he had 1525 in a saving account that pays 4 percent annual interest how much more will he have after 10 years than he will have after 6 years to the nearest dollar

Answer 1

jim is saving for college he had 1525 in a saving account that pays 4 percent annual interest how much more will he have after 10 years than he will have after 6 years to the nearest dollar​

we know that

The simple interest formula is equal to

`A=P\mleft(1+rt\mright)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

step 1

For t=6 years

P=$1,525

r=4%=4/100=0.04

substitute

`\begin{gathered} A=1,525(1+0.04\cdot6) \\ A=\$1,891 \end{gathered}`

step 2

For t=10 years

P=$1,525

r=4%=4/100=0.04

substitute

`\begin{gathered} A=1,525(1+0.04\cdot10) \\ A=\$2,135 \end{gathered}`

step 3

Find the difference

2,135-1,891=$244

answer is $244