Sam invests 1700 in a savings account that pays a nominal annual interest rate of 2.74% Sam makes no further payments or withdrawals from this account

David also invests 1700$ in a savings account that pays an annual rate of r% compounded yearly David makes no further payments or withdrawals from this account fund the value of r so that the amount in David’s account after 10 years will be equal to sams account

Answers

Answer 1

a.) The amount that Sammy will have in his account after 10 years will be= $2,165.8

$2,165.8b.) The value of 'r' required would be = 0.27%

What is interest rate?

Interest rate is defined as the rate at which an individual receives an amount of money from an investment made over a period of time.

The amount invested by Sam(P) = $1700

The interest rate(R) = 2.74%

The time of investment (T) = 10 years

Simple interest = P×T×R/100

= 1700×10×2.74/100

= 46580/100

= $465.80

Therefore, the amount that Sammy will have in his account after 10 years will be = $1700 + $465.80

= $2,165.8.

For David's account interest rate the following is carried out:

The amount invested by Sam(P) = $1700

The interest rate(R) = r%

The time of investment (T) = 10 years

Simple interest (SI) = $465.80

Using the formula for simple interest;

SI = P×T×R/100

Make R the subject of formula;

R = SI×100/P×T

R = 465.80×100/1700×100

R= 46580/170000

R= 0.27%

Learn more about simple interest here:

https://brainly.com/question/25793394

#SPJ1

Complete question:

Sam invests $1700 in a saving account that pays a nominal annual rate of interest of 2.74% compounded half-yearly. Sam makes no further payments to, or withdrawals from, this account. (a) Find the amount that Sam will have in his account after 10 years.

David also invests $1700 in a savings account that plays an annual rate of interest of r%, compounded yearly. David makes no further payments or withdrawals from this account. (b) Find the value of 'r' required so that the amount in David's account after 10 years will be equal to the amount in Sam's account.


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