SOLUTION: 3. Andrea wants to deposit money into a bank account that earns 4% simple annual interest. Use the formula to find the amount of money that she should deposit so that she earns $28
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Question 931589: 3. Andrea wants to deposit money into a bank account that earns 4% simple annual interest. Use the formula to find the amount of money that she should deposit so that she earns $2800 after 3.5 years. Show and explain your work.
Answer:
You can put this solution on YOUR website! Andrea wants to deposit money into a bank account that earns 4% simple annual interest. Use the formula to find the amount of money that she should deposit so that she earns $2800 after 3.5 years.
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Formula: A(t) = P(1 + rt)
2800 = P(1 + 0.04*3.5)
2800 = P(1.14)
P = 2800/1.14 = $2456.14
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Cheers,
Stan H.
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