Question

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Question 3
You've been saving and currently have $20,000 in a savings account earning 1.5% APR. What is the value after 10
years?.
You've been saving and currently have $20,000 in a savings account earning 1.5% APR. What is the value after 10
years?

Answer 1

I believe for this particular equation you just want to use the equation for simple interest: I = P * r * t

Explantion:

I = Interest

P = principal

r = rate

t = time

change the rate: 1.5% into a decimal: 1.5/100 = .015 and plug in the values

I = 20,000 * (.015*10)

I = 20,000 * .15

I = 3000

add the interest to the principal to get the value after 10 years

20,000 + 3000 = 23,000

giving you $23,000 after 10 years.