Question

Maya has savings of $50,000. She invests in a bond mutual fund that pays 4% interest each year. Ignoring compounding, what are Maya's total savings after 20 years? Ex: For $1,000 at 3% for 5 years, compute interest as $1,000 × 0.03 × 5 = $150, so the total savings becomes $1,000 + $150 = $1,150.

Answer 1

50,000 x 0.04 x 20=40,000
The total saving after 20 years 50,000+40,000=90,000$