Question

How do write an explicit function for simple interest where you start with $3000 and it grows at 7% for 5 years?

Answer 1

To calculate the total future amount using simple interest, use the formula A = P(1 + rt). In this case, the total future amount after 5 years with 7% simple interest starting with $3000 is $4050.

Step-by-step explanation:

To calculate the total future amount using simple interest, you can use the formula:

A = P(1 + rt)

Where:

• A is the total future amount
• P is the principal amount (initial amount)
• r is the interest rate (in decimal form)
• t is the time (in years)

In this case, the principal amount is $3000, the interest rate is 7% (0.07 in decimal form), and the time is 5 years. Plugging these values into the formula:

A = 3000(1 + 0.07*5)

A = 3000(1 + 0.35)

A = 3000(1.35)

A = 4050

Therefore, the total future amount after 5 years with 7% simple interest starting with $3000 is $4050.