Question

Joy has $68,020 in a savings account that earns 13% annually. The interest is not compounded. How much will she have in 5 years?

Answer 1

A = P + I

A is the new value

P is the initial value

I is the interest

I = PRT

R is the rate in decimal

T is the time

Joy has $68020

P = 68020

The account earns 13% annually

R = 13% = 13/100 = 0.13

The time is 5 years

T = 5

Let us find I, then A

I = 68020(0.13)(5)

I = 44213

Now let us find A

A = 68020 + 44213

A = $112233

She has $112233 in 5 years