PSAT 1.2 Math Diagnostic. After two years, how much money will Eduardo have?

Math | Problem Solving and Data Analysis |

PSAT | PSAT Math Diagnostic |

PSAT Math | Math Diagnostic |

was money in fund be fund a earns three point

five percent interest annually while fund be earns four point

two percent interest annually after two years How much money

will eduardo have and hear the potential Answer what I

kind of heard that interest income is your money So

assuming eduardo has left his investment earnings untouched hasn't blown

it all on star wars memorabilia We need to decide

how much dough he'll have in his two funds by

the end of two years Well eduardo would much rather

be playing with his stormtrooper action figures than doing the

math themselves so well the onus is on us Well

it's a slow day we don't have much else going

on First things first How much is eduardo putting into

each fun Well we're told he has eighty five hundred

bucks total and we put seventy five per cent of

that money to fund A twenty five percent into fund

be so here we just have a couple of simple

multiplication problems We can convert our percentages two decimals to

make them easier to work with So seventy five percent

becomes point seven five and twenty five percent becomes point

two five then we multiply each by the eighty five

hundred bucks Well looks like he put six thousand three

or seventy five dollars into fund a and two thousand

one hundred twenty five dollars into fund Be way can

add those two together to double check our work if

we're worried And yet six three seven five plus two

one to five equals eighty five hundred So we're golden

now for each fund we need to determine the interest

Fortunately there's an app for that they're well formula Anyway

i equals p arty that's interest equals the principal multiplied

by the rate multiplied by the time now he just

plug in chuck so for fun day our interest will

equal six thousand three hundred seventy five our principal times

A raid of three point five percent which is point

o three five and decimal form Don't forget that o

times to the number Of years eduardo's been accumulating interest

on his initial investment way come up with four hundred

forty six dollars and twenty five cents in interest accrued

Add that to the original six thousand three hundred seventy

five investment and fund a is now worth six thousand

eight hundred twenty one dollars and twenty five cents Now

the same spiel for fun be the principal is two

thousand one hundred twenty five bucks times a rate of

four point two percent or point zero or two times

to well we get one hundred seventy eight bucks and

fifty cents and interest accrued lost The two thousand one

hundred twenty five dollar investment and fund b is now

worth two thousand three hundred three dollars and fifty cents

Who it's grand total time Can we get a drum

roll please Adding together the six thousand eight hundred twenty

one point twenty five from fund eh and the two

thousand three hundred three point fifty from fund be waken

See that eduardo's initial investment of eighty five hundred dollars

has magically in mystically turned into nine thousand one hundred

twenty four dollars seventy five cents whom that'll buy you

a ton of nab Billion nerve knockers So yeah answer

C is the one we want at ease Eduardo Good

luck bringing down the galactic empire That extra six hundred 00:03:17.613 --> [endTime] bucks and change really help