Mr. Rodriguez invests $2,000 in a savings plan. The savings account pays an annual interest rate of 5.75% on the amount he put in at the end of each year.
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1
Step-by-step explanation:
Compound interest:
$
1498.11
to 2 decimal places
Simple interest:
$
1150.00
to 2 decimal places
Explanation:
You do not state which type of interest is applied.
Consider simple interest:
5.75% for 10 years gives
5.75
100
×
10
×
$
2000
=
$
1150.00
Consider compound interest:
$
2000
(
1
+
5.75
100
)
10
=
$
3498.11
total in the account
The interest is:
$
3498.11
−
$
2000
=
$
1498.11
to 2 decimal places
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