Answer:
Jordan will have $15687.50 after 3 years.
Step-by-step explanation:
First, we have to find the amount of interest Jordan has by using the following formula,
simple interest = $12,500 * 8.5% * 3
since the interest rate is obviously a percentage, we convert it into a decimal.
simple interest = $12,500 * 8.5% * 3
simple interest = $12,500 * 0.085 * 3
now that the numbers are the way it's supposed to be, we multiply them all together.
simple interest = $12,500 * 0.085 * 3
simple interest = $1062.50 * 3 (here, we multiply the first two numbers before multiplying it by 3 so we will have two numbers remaining which is easier to deal with without all three numbers together)
simple interest = $3187.50
Jordan has $3185.50 simple interest.
however, this is not the final answer since it asks how much he has AFTER 3 years. think about it.. would you really have $3187.50 AFTER 3 years with investing $12,500 into your account? no, since the values have such big difference to each other. we have to add the amount of interest by the principal by using the following formula,
total amount = principal + simple interest
now, we substitute the numbers in.
total amount = principal + simple interest
total amount = $12,500 + $3185.70
total amount = $15.687.50
Therefore, Jordan will have $15,687.50 after 3 years.
