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18. George invests $5000 for 14 years at a rate of 2% per year compound interest. Calculate the interest he

receives. Give your answer correct to the nearest dollar.

1 Answer

4 votes

Answer:

He will receive $1, 400 for interest

&

A total amount of $6, 400

Explanation:

To find the interest, we must apply the following formula:

I = P × R × T

I represents interest

R represents rate

T represents time

P represents principle

Steps:

1. Change the rate, which is 2%, into a decimal.

2. Multiply the principle, which is 5,000, by the rate, which is 0.02.

3. Multiply the product of the principle and rate, which is 100, by the time, which is 14 years.

So he will receive $1, 400 interest.

To find the total amount he recieved, we must:

Add the principle, which is 5,000, and the current interest, which is 1, 400.

5,000 + 1,400= 6,400

He will receive a total of $6, 400

I hope this helps! I'm sorry if it's wrong.

User Himanshu Pandey
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