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Ryan deposits $15,250 into an account that pays 2.42% simple interest. If he makes no deposits or withdrawals, how much will he have in his account after 27 months?

User Jpop
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Answer:

To calculate the amount Ryan will have in his account after 27 months with simple interest, you can use the following formula:

A = P(1 + rt)

Where:

A = the final amount

P = the principal amount (initial deposit)

r = the annual interest rate (as a decimal)

t = the time in years

In this case:

P = $15,250

r = 2.42% or 0.0242 (as a decimal)

t = 27 months / 12 months/year = 2.25 years

Now, plug these values into the formula and calculate:

A = $15,250 * (1 + 0.0242 * 2.25)

A = $15,250 * (1 + 0.05445)

A = $15,250 * 1.05445

A ≈ $16,113.62

So, after 27 months, Ryan will have approximately $16,113.62 in his account.

Step-by-step explanation:

User Zdeslav Vojkovic
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