Question

You invest $4000 in an account at 6.5% per year simple interest. How much will you have in the account at the beginning of the 9th year? Round your answer to the nearest whole dollar.

Answer 1

STEP - BY - STEP EXPLANATION

What to find?

The amount you will have in the account at the beginning if

Given:

P =4000

r = 6.5% = 0.065

t= 9-1 =8

Step 1

Recall the formula that can be used to solve the problem given.

`A=P(1+rt)`

Step 2

Substitute the values into the formula.

`A=4000(1+(0.065)(8))`

Step 3

Simplify the above.

`\begin{gathered} A=4000(1+0.52) \\ \\ =4000(1.52) \\ \\ =6080 \end{gathered}`

ANSWER

$6080