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?
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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
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