Question

3600 dollars is placed in an account with an annual interest rate of 9%. How much will be in the account after 25 years, to the nearest cent

Answer 1

Assuming the interest is simple interest, as opposed to compound interest,

$\bf ~~~~~~ \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 3600\\ r=rate\to 9\%\to \frac{9}{100}\to &0.09\\ t=years\to &25 \end{cases} \\\\\\ A=3600(1+0.09\cdot 25)\implies 3600(3.25)$