Marie invests $25,000 in a 60-day term deposit that pays four percent simple interest per year. How much money will she have after the 60-day period, to the nearest dollar?

Question

asked Jun 4, 2021 95.3k views

1 Answer

Paul Wray · Answer 1 · 2021-06-09T06:08:29+0000

Answer:

$\$25,164$

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

$t=60/365\ years\\ P=\$25,000\\r=4\%=4/100=0.04$

substitute in the formula above

A=25,000(1+(60/365)(0.04))

$A=\$25,164$