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erastova [34]
3 years ago
14

If \$1000 is deposited into an account that earns 3.25\% simple interest per year, how much money will be in the account after 7

years? PLEASE SHHOW WORK
Mathematics
1 answer:
Andrei [34K]3 years ago
8 0
<h3>Answer: 1227.50 dollars</h3>

======================================================

Explanation:

The simple interest formula to use is

A = P*(1+r*t)

where,

A = account value after t years (original deposit + interest)

P = 1000 = amount deposited (principal)

r = 0.0325 = annual interest rate in decimal form

t = 7 = number of years

So,

A = P*(1+r*t)

A = 1000*(1+0.0325*7)

A = 1227.50

Side note: you've earned A-P = 1227.50-1000 = 277.50 dollars in total interest

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