Question

A $900 deposit for 20 years at a simple interest rate of 4%​

Answer 1

The final investment value is
`\$1,620`

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=20\ years\\ P=\$900\\r=4\%=4/100=0.04`

substitute in the formula above

`A=900(1+0.04*20)`

`A=900(1.8)`

`A=\$1,620`