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Yanka [14]
2 years ago
10

William wants to invest $30,000 in a mutual fund.

Mathematics
1 answer:
Natali [406]2 years ago
8 0

Answer:

He will have $39,750 at the end of five years.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

E = P*I*t

In which E is the amount of interest earned, 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 question:

P = 30000, I = 0.065, t = 5

Interest earned:

E = P*I*t = 30000*0.065*5 = 9750

Total amount:

T = E + P = 9750 + 30000 = 39750

He will have $39,750 at the end of five years.

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