Question

Please Help!!

Answer 1

A = P(1 + rt)

Where:

·         A = Total Accrued Amount (principal + interest)

·         P = Principal Amount

·         I = Interest Amount

·         r = Rate of Interest per year in decimal; r = R/100

·         R = Rate of Interest per year as a percent; R = r * 100

·         t = Time Period involved in months or years

A = 15,000(1+ 0.07(5))

A = 20,250 they acquired in total for 5 years

The yearly amount the get is 15,000 xx 0.07 = $ 1050 per year

So in the next 25 years addition of 1050x25 = $26250 they will get