Question

Manuel has $20,000 in a savings account that earns 7% annually. The interest is not

compounded. How much interest will he earn in 2 years?


PLEASE HELP!!

Answer 1

If Manuel has $20,000 in a savings account that earns 7% interest per year and the interest is not compounded, then after two years he will earn $2,800 in interest. This is because 7% of $20,000 is $1,400, and since the interest is not compounded, this amount will remain constant for each year. Therefore, after two years Manuel will earn a total of $1,400 + $1,400 = $2,800 in interest.

In general, if a savings account earns x% interest per year and the initial amount in the account is y dollars, then after n years the account will earn n * (x/100) * y dollars in interest. For example, if the interest rate is 7% and the initial amount is $20,000, then after two years the account will earn 2 * (7/100) * $20,000 = $2,800 in interest.

Explanation:

Answer 2

The answer is $2800.

Explanation:

Given;

• Manuel has $20,000 in a savings account that earns 7% annually.

To Find;

• Interest of 2 years.

Now,

(20000 × 7) ÷ 100 = $1400

Here, we get for 1 year

for two years,

1400 × 2 = $2800

Thus, He will earn $2800 in 2 years.