Question

Heather invested $25,800 in an account that pays 4% simple interest. If she invests the money for 10 years, how much will she have?

Answer 1

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year.

Solving our equation:

A = 25800(1 + (0.04 × 10)) = 36120

A = $36,120.00

The total amount accrued, principal plus interest, from simple interest on a principal of $25,800.00 at a rate of 4% per year for 10 years is $36,120.00.