Question

6700 dollars is placed in an account with an annual interest rate of 8%. How much will be in the account after 24 years, to the nearest cent?

Answer 1

$\bf \qquad \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 6700\\ r=rate\to 8\%\to \frac{8}{100}\to &0.08\\ t=years\to &24 \end{cases} \\\\\\ A=6700(1+0.08\cdot 24)\implies A=19,564.00$

Answer 2

Answer:

After 24 years, there is going to be $19564 in the acount.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

$E = P*I*t$

In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

After t years, the total amount of money is:

$T = E + P$.

In this problem, we have that:

$P = 6700, r = 0.08, t = 24$. So:

$E = P*I*t = 6700*0.08*24 = 12864$

The total amount will be

$T = 6700 + 12864 = 19564$

After 24 years, there is going to be $19564 in the acount.