Question

Alex invested $10,500 in an account that pays 6 percent simple interest. how much money will he have at the end of four years?'

Answer 1

The amount generated from the investment with simple interest is calculated through the equation,

           F = P x (1 + in)

where F is the future amount, P is the present worth, i is the decimal equivalent of the given interest and n is the number of interest period.

From this item it can be identified that,
   P = $10,500
   i = 0.06
   n = 4

Substituting the known values,

    F = ($10,500) x (1 + (0.06)(4)) 
    F = $13020

Therefore, after four years, the amount of money that Alex will have is $13,020.