Question

Sarah inherited a sum of 1,539 dollars with an interest rate of 1% per year what is the accrued value after 5 years, 10 years, and 15 years. Show all work. any help would be great.

Answer 1

Answer:

See explanation

Step-by-step explanation:

Use formula

$I=P\cdot r\cdot t,$

where

I = interest,

P = principal,

r = rate (as decimal),

t = time

In your case,

$P=\ 1,539\\ \\r=0.01$

If $t_1=5$ years, then

$I_1=1,539\cdot 0.01\cdot 5=76.95$ and the whole sum is $\ 1,539+\ 76.95=\ 1,615.95$

If $t_2=10$ years, then

$I_2=1,539\cdot 0.01\cdot 10=153.9$ and the whole sum is $\ 1,539+\ 153.9=\ 1,692.9$

If $t_3=15$ years, then

$I_3=1,539\cdot 0.01\cdot 15=230.85$ and the whole sum is $\ 1,539+\ 230.85=\ 1,769.85$