Answers

2014-11-24T11:13:09+08:00
First we have to know how many is 10% of $2000

It will be like this

2000 * 10%

or

2000 * 0.10

or

2000 * 10/100

That will be

200 (10% of 2000 is 200)

so in the first year the amount will increase to 2200

2000 + 200 = 2200

we now need to know the 10% of 2200

2200 * 10%

is

220

In the second year it will be 2420

2200 + 220 = 2420

In the last year,

2420 * 10%

is 242

Therefore

She needs to pay $2662

I hope it helps.
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2014-11-24T12:24:04+08:00
By using simple interest formula; S = P(1+ni)
where:
             S = future value = required
              P = present value = 2000
              n = periods = 3yrs
               i = interest = 10%
therefore;
             S = 2000(1+3(0.1))
              S  = 2600

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