Answer:
Principal Value = $93.103
New Balance = $201.103
Step-by-step explanation:
Given:
Rate=R = 8%
Time =t= 2 years
Money earned = $108
To Find:
Principal interest = ?
New balance = ?
Solution:
The formula for Interest is
A = P(1+rt)
here A = $108, r= R/100 = 8/100 and t= 2
To Find
P=?
Now we have all values putting them in the formula we get
108 = P([tex]1+\frac{8}{100}*2[/tex])
108=P([tex]1+\frac{8}{50}[/tex])
taking LCM and solving
108=P([tex]\frac{50+8}{50}[/tex])
108=P([tex]\frac{58}{50}[/tex])
Multiplying both sides by [tex]\frac{50}{58}[/tex] we get
[tex]108*\frac{50}{58}=P(\frac{58}{50}*\frac{50}{58}[/tex])
we will get
P[tex]=108*\frac{50}{58}[/tex]
P[tex]=\frac{5400}{58}[/tex]
We get
P = $93.103
so Principal Value is $93.103
Now
New balance = Principal value + Interest earned
= 93.103 + 108
= $201.103
New Balance = $201.103
