Answer:
The accrued value after 5 years is $1,605.95.
The accrued value after 10 years is $1,672.9.
The accrued value after 15 years is $1,739.85.
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 have that:
Accrued value after 5 years
This T when t = 5. So
The total is
The accrued value after 5 years is $1,605.95.
Accrued value after 10 years
This T when t = 10. So
The total is
The accrued value after 10 years is $1,672.9.
Accrued value after 15 years
This T when t = 15. So
The total is
The accrued value after 15 years is $1,739.85.