Question

Calculate the amount of money​ you'll have at the end of the indicated time​ period, assuming that you earn simple interest.You deposit ​$3600 in an account with an annual interest of 5.4​% for 15 years. The amount of money​ you'll have at the end of 15 years is ​____?

Answer 1

First you need to figure out what 5.4% of 3600 is. So take 3,600 x 0.054. This equals 194.4. You then want to add this to 3,600. This will equal 3,794.4. You then want to do the process again, so the interest this year comes from 3,794.4 x 0.054. This equals about 204.9 (if you can it is 204.8976). Then you want to add that back into 3,794.4 so it will equal about 4,000 (or 3,999.2976) Well now this is a long process, but its the one way I remember how to do it.