1. Lin deposited $300 in her savings account which has a 2% interest rate per year. How much is in her account after 1 year? After 2 years?

2. Diego wants to sell his bicycle. It costs $150 when he bought it but has depreciated by 15%. How much should he sell it for?

Step-by-step explanation:

1. Given data

Principal p = $300

Rate r = 2% = 2/100 = 0.02

Time t = 1 year and 2 years

Final amount A = ?

Applying the simple interest formula

For the first year

A = p (1 + rt)

A = 300 (1 + 0.02*1)

A = 300 (1.02)

A = $306

After one year her will have $306

For the second year

Principal p = $306

A = 306 (1 + 0.02*2)

A = 306 (1+0.04)

A = 306 (1.04)

A = $318.24

After two years she will have $318.24

2. Given data

Cost of bicycle = $150

Depreciation = 15%

Firstly let us calculate 15% of $150

(15/100) * 150 = 0.15*150

= $22.5

Since the value depreciated

We will minus the the depression from the initial amount

New amount = 150-22.5=

$127.5