Question

Calculate the amount of money you'll have at the end of the indicated time period You invest $2000 in an account that pays simple interest of 4 % for 20 years. The amount of money you'll have at the end of 20 years is S

Answer 1

The amount would be $ 3600.

Explanation:

Given,

The invested amount, P = $ 2000,

Annual rate of interest, r = 4 %,

Time, t = 20 years,

So, the simple interest would be,

`I=(P* r* t)/(100)`

`=(2000* 4* 20)/(100)`

`=(160000)/(100)`

`=\$1600`

Hence, the amount of money after 20 years,

`A=P+I`

`=2000+1600`

`=\$ 3600`