Question

If $25 is invested at a simple interest rate of 3% per year, want would the total account balance. be after forty-five years?

Answer 1

For this case we have the following info:

P = 25$

r = 0.03

t = 45 years

And we can find the final amount with this formula:

`A=P(1+rt)=25(1+0.03\cdot45)=58.75`

Then the final amount after 45 years would be 58.75$