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Riley keeps her money invested for 7 years. How much interest will she earn? Show your work.

After those 7 years, how much will her investment be worth? Show your work.

User Geograph
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1 Answer

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Assuming a simple interest scenario with a $10,000 investment at a 5% annual interest rate, Riley would earn $3,500 in interest, resulting in a total investment value of $13,500 after 7 years.

To determine the interest earned and the total investment value after 7 years, we need more information about the interest rate and the type of investment (simple interest, compound interest, etc.). Assuming a simple interest scenario, the formula for calculating interest is:

Interest = P * r * t

Where:

P is the principal amount (initial investment),

r is the annual interest rate (as a decimal),

t is the time the money is invested in years.

Additionally, the total investment value (A) after t years with simple interest is given by:

A = P + Interest

To provide a numerical example, let's assume Riley invested $10,000 at an annual interest rate of 5% for 7 years:

P = $10,000, r = 0.05, t = 7

Interest = 10000 * 0.05 * 7 = $3,500

A = 10000 + 3500 = $13,500

Therefore, Riley would earn $3,500 in interest, and her total investment would be worth $13,500 after 7 years.

User Rthur
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