Question

A business invests $25,000 in an account that earns 5.1% simple interest annually.

What is the value of the account after 4 years?

Answer 1

Interest = $5100

Explanation:

Using the formula:

I = PRT

Put in the numbers:

Interest = 25000 x 5.1% x 4

Then calculate:

Interest = 25000 x 5.1/100 x 4

Interest = 250 x 5.1 x 4

Interest = 1275 x 4

Interest = $5100