Question

Robert won $900,000 in the North Carolina State Lottery. After paying 350,000 in taxes, he invested the remaining money in a savings account with 4.25% interest rate. How much money is in the account if Robert makes no deposits or withdrawals for two years?

Answer 1

I = P R T

I = 550,000 (.0425) (2)

I = $ 46,750

$550,000 + $46,50 = $ 596,750