Samantha deposited $650 into a savings account that pays 3.5% annually. After 6 years what will be the value of her investment in dollars?
Mathematics · Middle School · Thu Feb 04 2021
Answered on
Given:
Principal amount ( P ) = $650
Interest rate ( r ) = 3.5% or 0.035 (divided by 100)
Term ( t ) = 6.5
Find the future value.
Formula for Simple Interest
A = P ( 1 + rt )
Solution:
Substitute the given values of r,t and P to the formula for simple interest.
A = P ( 1 + rt )
A = $650 ( 1 + (0.035)(6))
A = $650 ( 1 + 0.21)
A = $650(1.21)
A = $786.5
Final answer:
The future value of the investment is $786.5