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Edward deposited $9,000 into a savings account 2 years ago. The simple interest rate is 4% How

much money did Edward earn in interest?
Substitute the values into the equation.
Interest=$ 3.0. years
Please help

User Kajiyama
by
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1 Answer

6 votes

Answer:

$734.40

Explanation:

y=9,000(1.04)^t is our equation for this.

The 9,000 is the starting amount.

1.04 is the 4% since 4% is 4/100 which equals 0.04, then we add 1 to that since it's increasing in value.

y represents our output.

t represents time (in years for this equation)

Since they give us the amount of years since he deposited the $9,000, we put the number they gave us (2 years) into the equation, replacing t.

y=9,000(1.04)^2

Put the right side into a calculator and it gives you 9734.4.

That's the total amount he has now, so to find how much he earned we subtract the starting amount (9000).

734.4.

Edward earned $734.40.

User Markblandford
by
5.2k points