Question

How much money will you have after 4 years and 3 months if you deposited $10,000 in a bank that pays 0.5% simple interest?

Answer 1

$10,212.50

Explanation:

We'll use this formula: A = P(1 + rt)

A = Final amount

P = Starting amount (10,000)

r = rate (0.005)

t = time in years (4.25)

A = 10,000(1 + 0.005 x 4.25)

A = 10,000(1 + 0.02125)

A = 10,000(1.02125)

A = 10,212.5