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?

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justaguide | College Teacher | (Level 2) Distinguished Educator

Posted on

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.

neela's profile pic

neela | High School Teacher | (Level 3) Valedictorian

Posted on

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.

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