Question

Milton won 10,000 in a drawing. He put the entire amount into a savings account with 7.5% simple interest per year for 4 years. How much money did milton have in the account after 4 years?

Answer 1

Using the simple interest formula, I=PRT, with a principal of $10,000, a rate of 7.5%, and a time of 4 years, Milton will have a total of $13,000 in his account after 4 years.

Step-by-step explanation:

To calculate the total amount of money Milton will have in his savings account after 4 years with a simple interest rate of 7.5%, we can use the simple interest formula:

I = PRT

Where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Given that Milton invested $10,000 at a simple interest rate of 7.5% for 4 years, we can plug these values into our formula:

I = $10,000 * 0.075 * 4

I = $3,000

Now we add the interest to the principal to find the total amount in the account after 4 years:

Total Amount = Principal + Interest

Total Amount = $10,000 + $3,000

Total Amount = $13,000