Question

A bank pays interest of 11%. Mr. Olsen puts $5000
in the bank.
How much has he after
One year
Two year
Three year​

Answer 1

Answer:

SIMPLE INTEREST $5550, 6100, 6650

COMPOUND INTEREST $5550, 6160.50, 6838.16

Step-by-step explanation:

As you have not mentioned whether interest is simple or compound, I have solved for both.

You can choose the correct one.

SIMPLE INTEREST

P=5000, R=11%, T= 1, 2  & 3

SI=PRT/100

SI1=5000  x 11 x 1/100

=550

A1= P + SI1 = 5000 + 550 = 5550

SI2 = 5000  x 11 x 2/100

=1100

A2=5000 + 1100 = 6100

SI3 = 5000  x 11 x 3/100 = 1650

A3= 5000 + 1650 = 6650

COMPOUND INTEREST

R=11%, P = 5000, n= 1, 2  & 3

A=P(1+R/100)^n

A1=5000(1+11/100)^1

= 5000x1.11 = 5550

TWO years

A2=5000(1+11/100)^2

=5000 x 1.2321 = 6160.50

THREE years

A3=5000(1+11/100)^3

=5000 x 1.367631 = 6838.155 ≈6838.16