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matthew invested $5000 in an account that earns 3.8% interest . how much did matthew have in his account after 3 years

User Ben Miles
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6 votes

Answer:

$5591.93 would be the answer.

User Donquijote
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the assumption being "simple interest" rate of 3.8%, as opposed to "compound interest".


\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$5000\\ r=rate\to 3.8\%\to (3.8)/(100)\dotfill &0.038\\ t=years\dotfill &3 \end{cases} \\\\\\ A=5000[1+(0.038)(3)]\implies A=5000(1.114)\implies A=5570

User Martin Kolinek
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