Answer:
$82.45
$4932.45
$4932.45
$9782.45
$166.30
$9948.75
Step-by-step explanation:
Since we're computing for two different years with two different principals, we need to compute them separately.
First we start with year 1.
Since the n will be 1 for both years, we can use the formula:
[tex]A=P(1+r)^{t}[/tex]
P = 4850
r = 1.7% or 0.017
t = 1
Let's plug in our values to find the Ending balance.
[tex]A=4850(1+0.017)^{1}[/tex]
[tex]A=4850(1.017)^{1}[/tex]
[tex]A=4850(1.017)[/tex]
[tex]A=4932.45[/tex]
The new ending balance will be $4932.45.
To find for the amount of interest earned, we simply subtract the ending balance to the new balance.
I = 4932.45 - 4850
I = $82.45
Laura's account earned $82.45 after the first year.
Now for year 2.
Laura's beginning balance will be $4932.45.
Her new balance will be her beginning balance plus the amount deposited.
New balance = $4932.45 + $4850
New balance = $9782.45
Now using her new balance we compute for her ending balance.
P = $9782.45
r = 1.7% or 0.017
t = 1
[tex]A=9782.45(1+0.017)^{1}[/tex]
[tex]A=9782.45(1.017)^{1}[/tex]
[tex]A=9782.45(1.017)[/tex]
[tex]A=9948.75[/tex]
Laura's ending balance after the second year is $9948.75.
Now let's compute for her interest.
I = 9948.75 - 9782.45
I = $166.30
Laura's account earned $166.30 after the second year.
