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
Time period = 25 years
Interest rate = 4%
We know that
Simple interest = PTR/100
Here P = principal
T = Time period
R= Rate or interest
Simple interest = $ 3000*25*4/100
= $ 300000/100
= $ 3000
Total amount =principal+ interest
= $ 3000+$3000
= $ 6000
Hence the investment amount becomes $ 6000
jeff jeffy answered 2 years agoRelated Solutions
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