Question

Shanna deposit 11,500 and leaves the funds in her account for 14 years how much will she have if the interest rate of the bank offered 4.9%

Answer 1

Hello!

This is a problem about interest rates.

Since we are not given the "
`n`" value, how many times this interest applies per time period, we can assume that we are most likely dealing with simple interest with an annual interest rate.

The simple interest formula is as follows,

`A=P(1+rt)`

Where
`A` is the total amount,
`P` is the initial principal balance,
`r` is the annual interest rate, and
`t` is time in years.

Since we are given all this information, we can just solve after converting the interest rate of 4.9% to a decimal, which is 0.049.

`A=11500(1+0.049*14)`

`A=11500(1.686)`

`A=19389`

So at the end of the 14th year, Shanna will have $19,389 in her account.

Hope this helps!