Question

7900 dollars is placed in an account with an annual interest rate of 5.5%. How much will be in the account after 11 years?

Answer 1

Answer:

$\ 12,679.50$

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

$t=11\ years\\ P=\ 7,900\\ A=?\\r=5.5\%=5.5/100=0.055$

substitute in the formula above

$A=7,900(1+0.055*11)$

$A=7,900(1.605)$

$A=\ 12,679.50$