contestada

An investment of $600 is made into an account that earns 6.5% annual simple interest for 15
years. Assuming no other deposits or withdrawals are made, what will be the balance in the
account?

Respuesta :

we use the formula of the simple interest

[tex]C=c(1+n\cdot\frac{i}{100})[/tex]

where C is the total capital, c the initial capital, the number of years and i the value fo the interest

then replacing

[tex]C=600(1+(15)\cdot\frac{(6.5)}{100})[/tex]

and solving

[tex]\begin{gathered} C=600(1+0.975) \\ C=600(1.975) \\ C=1185 \end{gathered}[/tex]

The final valance into the acoount will be $1185

Interest earned

[tex]1185-600=585[/tex]

is $585