SOLUTION: Your rich uncle just gave you a gift of $40,000. You are investing this money for 15 years at 7 percent simple interest. How much money will you have at the end of the 15 years?
Question 1129443: Your rich uncle just gave you a gift of $40,000. You are investing this money for 15 years at 7 percent simple interest. How much money will you have at the end of the 15 years? Found 2 solutions by Boreal, ikleyn:Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website! I=prt=40000*0.07*15=$42,000 of interest
But the principal is also part of this, so the total will be $82,000
Simple interest compounded (not the question) would be P=Po(1+r)^15
P=40000(1+.07)^15, rule of 72 would say this will double in 10 years, so expect answer to be well over $80,000 but doesn't double twice, so below $160,000
$110,361.26 Compounding matters! Answer by ikleyn(52782) (Show Source): You can put this solution on YOUR website! .
40000*(1 + 0.07*15) dollars.
Use your calculator.
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Notice that @Boreal misread the problem and gave the solution and the answer not for the simple interest, but for compounded account.