Question

Eliza finds an investment account that earns 4.5% interest. She decides to deposit $2,500 into an account.



How much money will be in her account after 14 years?

Answer 1

Answer:

$4,075.00

Step-by-step explanation:

simple interest formula

A = P(1+rt)

where:

A is the final amount

P is the initial principal amount

r is the annual interest rate

t is the time (years)

First, converting R percent to r a decimal

r = R/100 = 4.5%/100 = 0.045 per year.

Solving our equation:

A = 2500(1 + (0.045 × 14)) = 4075

A = $4,075.00

The total amount from simple interest on a principal of $2,500.00 at a rate of 4.5% per year for 14 years is $4,075.00