Question

$6000 invested at an APR a 4.4% for 20 years what is the balance in the account after 20 years

Answer 1

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:

$E = P*I*t$

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:

$T = E + P$.

In this problem

We want to find T, when $P = 6000, I = 0.044, t = 20$

The first step is find the earnings due to interest. So

$E = P*I*t = 6000*0.044*20 = 5280$

Adding to the principal to find the balance

$T = E + P = 5280 + 6000 = 11280$

The balance in the account after 20 years will be $11280.