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Mazyrski [523]
3 years ago
6

How much would it be worth in 5, 10, 20 years

Mathematics
1 answer:
pochemuha3 years ago
8 0

Answer:

$675

$850

$1200

Step-by-step explanation:

Use formula for simple interest:

A = P (1+rt)

where

A = accrued amount (principal + interest) = what we want to find

P = Principal (initial) amount = Given as $500

r = rate of interest = Given as 7% = 0.07

t = time

For 5 years, t = 5

A = 500 [ 1 + 0.07(5) ] = $675

For 10 years, t = 10

A = 500 [ 1 + 0.07(10) ] = $850

For 20 years, t = 20

A = 500 [ 1 + 0.07(20) ] = $1200

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