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1 vote
14. Rhonda invested $5000 in an interest bearing account which earns 2.5% annually. How

much will be in her account in 4 years?
What decimal value is
used for the "b" value in this example?​

1 Answer

3 votes

Answer:


\$5,500

see the explanation

Explanation:

we know that

The simple interest formula is equal to


A=P(1+rt)

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have


t=4\ years\\ P=\$5,000\\r=2.5\%=2.5/100=0.025

substitute in the formula above


A=5,000(1+0.025*4)


A=5,000(1+0,10)


A=5,000(1,10)


A=\$5,500

User Nick Uraltsev
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