Question

1600 dollars is placed in an account with an annual interest rate of 5. 25%. How much will be in the account after 25 years, to the nearest cent?.

Answer 1

The amount of that will be in the account after 25 years is 370000 cents.

What is simple interest?

The simple interest on an account is the kind of interest charge on a loan. It can be estimated by using the formula;

$\mathbf{S.I = \dfrac{P \times R \times T}{100}}$

$\mathbf{S.I = \dfrac{1600 \times 5.25 \times 25}{100}}$

S.I = $2100

After 25 years, the amount that will be in the account will be:

= Principal + simple interest

= $1600 + $2100

= $3700

To the nearest cent, we have:

= 370000 cents

Learn more about simple interest here:

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