Question

Newman Jackson invests $45,200 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Newman withdraws the accumulated amount of money.

Compute the amount Alan would withdraw assuming the investment earns simple interest. (Round answers to 0 decimal places, e.g. 458,581.)
Total withdrawn $

Answer 1

$ 90400

Step-by-step explanation:

Simple interest = (P × R × T ) / 100 where P is principal = $ 45 200, R = rate at 10% and T = time, 10 years

Simple interest for ten years = ($ 45 200 × 10 × 10) / 100 = 45200

amount withdrawn = $ 45200 + $ 45200 = $ 90400