Marty placed $10000 into an account earning 5% simple interest. At the end of the year he moved the total amount to a new account earning 6% interest. Determine the amount of money Marty would have at the end of the second year.

Question

Mathematics

Hanna Hampton

24 March, 11:27

Marty placed $10000 into an account earning 5% simple interest. At the end of the year he moved the total amount to a new account earning 6% interest. Determine the amount of money Marty would have at the end of the second year.

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Answers (1)

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Brock Bean · Answer 1

Step-by-step explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time in years

I = interest after t years

Considering the first account,

T = 1 year

P = $10000

R = 5%

I = (10000 * 5 * 1) / 100 = $500

The total amount = 10000 + 500 = $10500

he moved the total amount to a new account earning 6% interest. Therefore,

P = 10500

R = 6%

T = 1

I = (10500 * 6 * 1) / 100 = $630

The amount of money that Marty would have at the end of the second year is

630 + 10500 = $11130