Question

How much will Chris’s investment account be worth in five years if he invests $5,000 with 2.8% interest?

Answer 1

`\$5,700`

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=5\ years\\ P=\$5,000\\r=0.028`

substitute in the formula above

`A=\$5,000(1+0.028*5)`

`A=\$5,000(1.14)=\$5,700`