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laiz [17]
3 years ago
14

If Aldo puts 400 into a savings account that paid an interest rate of 5.4 percent What was the total amount in his account at th

e end of one year (total amount equals principal plus interest)
Mathematics
1 answer:
Ne4ueva [31]3 years ago
5 0

Answer:

\$421.60

Step-by-step explanation:

we know that

The simple interest formula is equal to

A=P(1+rt)

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

t=1\ year\\ P=\$400\\ A=?\\r=5.4\%=5.4/100=0.054

substitute in the formula above

A=400(1+0.054*1)

A=400(1.054)

A=\$421.60

Remember that Interest is equal to

I=A-P

I=\$421.60-\$400=\$21.60

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