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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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  1. 24 March, 15:21
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    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
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