Question

1. An account is opened with a balance of $2800earning 4.25% simple interest. What will be thebalance in the account in 30 years?

Answer 1

$6370

Step-by-step explanation:

The simple interest formula gives us the final amount A given the principal amount P:

`A=P(1+rt)`

where r is the interest rate and t is the time interval.

Now in our case we have

P = 2800

r = 4.25/100

t = 30 years

therefore, the above formula gives

`A=2800(1+(4.25)/(100)\cdot30)`

which simplifies to give

`\boxed{A=\$6370}`

Hence, the account balance after 30 years will be $6370.