Question

Jose deposits $2,500 in an account that earns 5% simple interest. How much is Jose's investment worth after 20 years

Answer 1

$5,000

Explanation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year.

Solving our equation:

A = 2500(1 + (0.05 × 20)) = 5000

A = $5,000.00