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Pahola invests $3,500 in a money market account.The simple interest rate on her investment is 3.65%.How much will pahola's account be worth in 4 years?

User Climbon
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1 Answer

1 vote

Given:

Principal = $3500

Rate of simple interest = 3.65% = 0.0365

Time = 4 year

To find:

The amount.

Solution:

The formula for simple interest is


I=P* r* t

where, P is principle, r is rate of interest and t is time in years.

Substituting P=3500, r=0.0365 and t=4, we get


I=3500* 0.0365* 4


I=511

Now,


Amount=P+I


Amount=3500+511


Amount=4011

Therefore, the amount after 4 years in pahola's account is $4011.

User Graham Seed
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