Question
In: Finance
Today, you open a new savings account and deposit $3,000. No other deposits or withdrawals are...
Today, you open a new savings account and deposit $3,000. No other deposits or withdrawals are made to your account. Assume you will earn 4% simple interest per year. How much will your investment be worth in 25 years
Solutions
Expert Solution
Deposit amount =$3000
Simple Interest Earns per year = Principal*Interest Rate
=3000*4% = 120.
Total Interest Earns in 25 Years = Simple Interest* No.of Years
= 120*25 = 3000
Therefore total amount in the account= principal+ total interest = 3000 + 3000 = 6000
jeff jeffy answered 2 years agoRelated Solutions
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