Question

1. An account is opened with a balance of $2800earning 4.25% simple interest. What will be thebalance in the account in 30 years?

Answer 1

Answer:

$6370

Explanation:

The simple interest formula gives us the final amount A given the principal amount P:

$A=P(1+rt)$

where r is the interest rate and t is the time interval.

Now in our case we have

P = 2800

r = 4.25/100

t = 30 years

therefore, the above formula gives

$A=2800(1+\frac{4.25}{100}\cdot30)$

which simplifies to give

$\boxed{A=\ 6370}$

Hence, the account balance after 30 years will be $6370.