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Law Incorporation [45]
3 years ago
5

14. Rhonda invested $5000 in an interest bearing account which earns 2.5% annually. How

Mathematics
1 answer:
shusha [124]3 years ago
8 0

Answer:

\$5,500

see the explanation

Step-by-step explanation:

we know that

The simple interest formula is equal to

A=P(1+rt)

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

t=4\ years\\ P=\$5,000\\r=2.5\%=2.5/100=0.025

substitute in the formula above

A=5,000(1+0.025*4)

A=5,000(1+0,10)

A=5,000(1,10)

A=\$5,500

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