Question

determine the amount of an investment if $250 is invested at an interest rate of 10.3% for 40 years. Round to the rearest penny

Answer 1

Answer:

Final answer is $1280.

Step-by-step explanation:

Given that $250 is invested at an interest rate of 10.3% for 40 years.

Now we need to determine the amount of that investment after 40 years.

It doesn't say anything about compounding period so I will consider that as simple interest.

Hence let's use simple interest formula:

$A=P(1+RT)$

Where amount invested = P = 250

rate of interest = R = 10.3% = 0.103

Time = T = 40 years

Now plug these values into above formula

$A=250(1+0.103*40)=250(1+4.12)=250(5.12)=1280$

Hence final answer is $1280.

Answer 2

Answer:

$1280.

Step-by-step explanation:

We have been given that an amount of $250 is invested at an interest rate of 10.3% for 40 years.

To find the amount after 40 years, we will use simple interest formula.

$A=P(1+rt)$, where,

A = Amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert our given interest rate in decimal as:

$10.3\%=\frac{10.3}{100}=0.103$

Upon substituting our given values in above formula, we will get:

$A=\ 250(1+0.103*40)$

$A=\ 250(1+4.12)$

$A=\ 250(5.12)$

$A=\ 1280$

Therefore, there will be $1280 in account after 40 years.