Question

After 2 years, $40,000 deposited in a savings account with simple interest had earned $12,000 in interest. What was the interest rate?

Answer 1

FV = 45,073.00 pesos

Explanation:

FV=PV∗(1+(r/n))nt

FV = ?

PV = 40000

r = 4% or 0.04

n = 4 (quarterly)

t = 3 years

FV=40000∗(1+(0.04/4))(4∗3)

FV=40000∗(1.01)12

FV=40000∗1.126825

FV=40000∗1.126825

FV = 45,073.00 pesos