Question

Fred invests $4500 in an account which gives him 2.7% simple interest per annum. after 4 years, what is the total amount of money in the account?

Answer 1

The total amount of money in the account after 4 years is $6444.

Step-by-step explanation:

To calculate the total amount of money in the account after 4 years with simple interest, we can use the formula:

Total Amount = Principal + (Principal * Interest Rate * Time)

Using the given values:

Principal = $4500, Interest Rate = 2.7% = 0.027, Time = 4 years

Substituting into the formula:

Total Amount = $4500 + ($4500 * 0.027 * 4)

Total Amount = $4500 + ($486 * 4)

Total Amount = $4500 + $1944

Total Amount = $6444