Maria has $350, she spends 2/7 of her money & invests the rest for 2 years at 5% per year simple interest .How much money does Maria have at the end of the 2 years?
Maria has $350, she spends 2/7 of her money & then invests the rest for 2 years at 5% per year simple interest. We need to find how much money does Maria have at the end of the 2 years?
As Maria spends 2/7 of the money, she saves 5/7 or (5/7)*350 = 250.
This is invested for two years at 5% per year simple interest. So the interest earned for two years is 250*2*5/100 = 25
Therefore at the end of two years she has the amount saved $250 and the interest $25.
Th required amount with her after 2 years is $275.
Spendinfg of Maria = (2/7) of $350 = $100.
The rest of the money invested = 350-100 = $250.
The rate of interest on investment = 5%.
The money after she gets after 2 years is required to be calculated.
We use the formula Interest amount = PTR/100 where P = amount invested , T = number of years, and R = rate of interest.
Therefore the interst amount Maria gets after 2 years = 250*2*5/100 = $25.
So the amount Maria should get after 2 years = Invested amount +Interest accrued = 250+25 = $275.