Question

7900 dollars is placed in an account with an annual interest rate of 5.5%. How much will be in the account after 11 years, to the nearest cent?

Answer 1

Answer: the answer is 14236.53

Answer 2

`\$12,679.50`

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=11\ years\\ P=\$7,900\\r=5.5\%=5.5/100=0.055`

substitute in the formula above

`A=7,900(1+0.055*11)`

`A=7,900(1.605)`

`A=\$12,679.50`