Question

Country bank pays a simple interest rate of 4% per year. A student plans to invest 5000. How much money will the student have at the end of 6 years

Answer 1

$6200

Explanation:

Given data

Rate= 4%

Principal=$5000

Time = 6 years

The simple interest formula is

A=P(1+rt)

substitute

A=5000(1+0.04*6)

A= 5000(1+0.24)

A=5000*1.24

A=$6200