Question

Hector deposits $150,000 into an account earning 3.6% simple interest annually. Find the maturation value (final amount) of the account after 5 years.

Answer 1

simple interest

1 year:
`3.6\% \cdot 150,000 = (3.6)/(100) \cdot 150,000 = 5,400`

5 years:
`5,400(5) = 27,000`

the maturation value:

`150,000 + 27,000 = \$ 177,000`