On your 5th birthday, your grandparents opened an investment account in your name and made an initial deposit of $2,500. The account pays 4.5 percent interest. How much will you have in the account on your 21st birthday if you don't add or withdraw any money before then?
Mathematics · High School · Tue Nov 03 2020
llm
Answered on
Given :
Principal = $2,500
Rate = 4.5%
Time = 16 years
Formula :
Interest = ( P × R × T)/100
= (2500 × 4.5 × 16)/100
= $1,800
So, Amount = Principal + Interest
= $(2,500 + 1,800)
= $4,300
So, total amount on 21st birthday is $4,300.