a man deposits RM500 in a bank. The interest received of 5% per year is kept in the bank.

Question

b) A man deposits RM500 in a bank. The interest received of 5% per year is kept in the

bank. Find

i. the number of years it will take for the total savings to exceed RM750

ii. the total savings after 8 year

Answer 1

Adlina, My previous answer was very confusing because of formatting, so I deleted it. Best, Kathy

Answer 2

formula: A(t) = A•1.05^t where original amount A grows at 1.05 rate compounded annually for t years.

 

i)  750 = 500•1.05^t  solve for t...1.5 = 1.05^t ... ln 1.5 = t ln1.05 ... you can finish this task.

 

ii) Compute A(8) and then subtract original A=500 to get accumulated interest ("savings"<---should be "earnings")