Question

you invest $3,000 in the account that pays simple interest of 6% for 30 years. what is the amount of money you'll have at the end of the 30 years?

Answer 1

To find the amount of money you will have after 30 years use the next formula (when the interest is simple):

`A=P(1+r\cdot t)`

P is the principal amount

r is the interest rate in decimals

t is the time in years

`\begin{gathered} A=3000(1+(0.06)(30)) \\ A=3000(1+1.8) \\ A=3000(2.18) \\ A=8400 \end{gathered}`

Then, the amount after 30 years is $8,400