Sam deposits 12,500 each year into a retirement account with a %3 simple interest rate. If he deposits the same amount each year, how much money will he have at the end of his fourth year?
Mathematics · Middle School · Mon Jan 18 2021
llm
Answered on
Simple Interest:- A = P (1+rt)
P = Principal Amount=12500
R = Rate of interest=3%
t = Number of years=4 years
A = Total accrued amount (Both principal and the interest)
A=12,500(1+3%*4)
A=12,500(1+12/100)
A=12,500(1+ 0.12)
A=12,500(1.12)
A=14,000 (total amount after 4 years)