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kompoz [17]
3 years ago
15

A principal of $950 is invested in an account at 7 percent simple interest per year. What is the amount of the principal after 5

years?
Be careful! What term of the simple interest sequence tells you the principal after 1 year? What term of the simple interest sequence tells you the principal after 5 years?
Mathematics
1 answer:
Nataly_w [17]3 years ago
3 0
\bf ~~~~~~ \textit{Simple Interest Earned Amount}
\\\\
A=P(1+rt)\qquad 
\begin{cases}
A=\textit{accumulated amount}\\
P=\textit{original amount deposited}\to& \$950\\
r=rate\to 7\%\to \frac{7}{100}\to &0.07\\
t=years\to &5
\end{cases}
\\\\\\
A=950(1+0.07\cdot 5)\implies A=950(1.35)\implies A=1282.5
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