Question

timmy put $200,000 in a retirement account that earns 4.1% interest each year. find the amount earned after 5 year.

Answer 1

$241000

Explanation:

Use the formula I = Prt

I is interest (what you need to find first), P is principal (200,000), r is rate (4.1%), and t is time (5)

First convert the rate of 4.1% to a decimal by moving the decimal two places left.

4.1% = 0.041

Next plugin the numbers into the formula and multiply to find the interest.

I = 200000(0.041)(5)

I = 41,000

Finally you need to find the balance. To find the balance, add the interest to the principal.

B = 200000 + 41000

B = 241000