Question

7700 dollars is placed in an account with an annual interest rate of 5.75%. How much will be in the account after 24 years, to the nearest cent?

Answer 1

Answer:

A = $18,326.00

(assuming simple interest)

Step-by-step explanation:

Assuming simple interest, the following formula applies:

final amount = (principal amount) x [1  + (annual rate)(time elapsed) ]

or

A = P (1 + rt)

in our case,

P = $7,700

r = 5.75% = 0.0575

t = 24 years

hence,

A = 7700 [ 1 + (0.0575)(24)]

A = 7700 ( 1 + 1.38)

A = 7700 x 2.38

A = $18,326.00