Question

Question 15 ptsIf Martha puts $181 in the bank today at 2%, how much will she have have in 8 years? (Round to the 2decimal places)Question 25 ptsHow much will Bill and Mary need to put in the bank today at 5% to have $103,897 in 9 years? (Roundto 2 decimal places)

Answer 1

Question 1

Interest in 1 year at 2% per annum = 2/100 x $181 = $3.62

Total Interst after 8 years = 8 x $3.62 = $28.96

Total amount she has after 8 years = initial amount + Total Interst after 8 years

=$181 + $28.96 = $209.96 (2 decimal places)

Question 2

rate per annum, r = 5%

Time = 9years

Total amount = $103,897

Let the initial amount invested be p

interst after 1 year = 5% of p =$5p/100

Total interest after 9 years = 9 x 5p/100 = $45p/100

Total amount = p + 45p/100

That is,

103,897= p + 45p/100