Question

Calculate the amount of money​ you'll have at the end of the indicated time​ period, assuming that you earn simple interest. You deposit ​$3400 in an account with an annual interest of 4.5 ​% for 20years. The amount of money​ you'll have at the end of the years is

Answer 1

The amount of money​ you'll have at the end of the years is 6460 dollars

Explanation:

The total principal sum of money deposited =
`3400` dollars

The annual rate of interest is
`4.5` %

The time period for which the amount is invested
`= 20` years

As we know

`A = P (1 + rt)`

where A is the amount after 20 years

P is the principal sum of money

r is the rate of interest and

t is time period in years

Substituting the given values in above equation, we get -

`A = 3400 (1 + (4.5)/(100) * 20)\\A = 6460`dollars