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Lets say you have $5,000 to invest. You decided to invest it in a bank account thatearns simple interest at 5% interest per year. How much will be in your account after 10years? (be sure to include cents. Example if you got $34 dollars as an answer you needto type in $34.00)

Respuesta :

Answer:

$7500.00

Explanation:

The formula for simple interest is

[tex]A=P(1+rt)[/tex]

where A is the final amount, P is the principal amount, r is the interest rate, and t is the time interval.

Now in our case, we have

P = $5000

r = 5% = 5/100

t = 10

Therefore the above formula gives

[tex]A=5000(1+\frac{5}{100}\cdot10)[/tex]

the right-hand side simplifies to give

[tex]A=\$7500[/tex]

which is our answer!

If we include the cents then we have

[tex]A=\$7,500.00[/tex]

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