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BlackZzzverrR [31]
3 years ago
9

Sue invests $600 in an account at 4.5% simple interest paid annually over the term of 10 years. What is the final value?

Mathematics
1 answer:
BaLLatris [955]3 years ago
6 0

Answer:

$870

Step-by-step explanation:

To figure out how much the final value here is, use the formula A = P(1 + rt). (A = total accured amount, P = principal, r = rate (%), t = time (years))

A = 600 * (1 + (10 * 9/200)) (multiply 10 by 9 and put that over 200)

A = 600 * (1 + (90/200)) (90/200 simplifies to 9/20)

A = 600 * (1 + (9/20)) (add 1 (20/20) to 9/20 to get 29/20)

A = 600 * 29/20 (Multiply 600 by 29 and put that over 20)

A = 17400/20 (Divide 17400 by 20 to get 870)

A = 870

$870 is the final value.

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