Maths

Mrs jasmine Invested $4000 in a building society which paid simple interest at a rate of 7.25% per annum to its investors. After 2 years, the rate was increased to 7.6% per annum. Find the amount she had T the end of 7 years

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  1. Do the first 2 years at the regular amount then ADD it to the final five years at the new amount. Both parts using the simple interest equation.

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  2. P1 = Po + Po*r*t = 4000 + 4000*0.0725*2 = $4580 After 2 yrs.

    P = Po + Po*r*t = 4580 + 4580*0.076*5 = Amt. after 7 yrs.

    After 2 years, the account becomes a new account with an initial investment of $4580 for 5 years.

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  3. 6320.4

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  4. 6100

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  5. Interest before the rate was changed=4000x7.25x2/100
    =$580
    Interest after the rate was changed=4000x7.6x5/100
    =$1520
    Total Interest=$1520+$580
    =$2100
    Total money Mrs. Jasmine has after 7 years=$4000+$1520
    =$6100

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  6. The above question I answered had a typing mistake. The total money Mrs. Jasmine has after 7 years is=$4000+$2100
    =$6100

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