Question

6700 dollars is placed in an account with an annual interest rate of 8.25%. How much

will be in the account after 28 years, to the nearest cent?

Answer 1

• $22177

Explanation:

It is assumed a simple interest.

• Deposit P = $6700
• Interest rate r = 8.25% = 0.0825
• Time t = 28 years
• Final amount A = ?

Use simple interest formula:

• A = P(1 + rt)
• A = 6700*(1 + 28*0.0825) = 22177