Answer:
The balance in the account after 20 years will be $11280.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
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:
.
In this problem
We want to find T, when
The first step is find the earnings due to interest. So
Adding to the principal to find the balance
The balance in the account after 20 years will be $11280.
