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3 years ago

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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