Question 1095034: if 15,000 is invested in an account that earns 1.2% simple interest, how much money is in the account after 5 years? How much money would be in the account if the interest rate was 0.1% instead?
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! The general formula is P=Po{1+r/n))^nt, where t is the number of years and n the number of compoundings per year, 1 in this instance. That makes the form P=Po{1+r)^5
This is 15000(1+.012)^5=$15,921.86, rounding at the end.
15000(1+0.001)^5=$15,075.15
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! if 15,000 is invested in an account that earns 1.2% simple interest, how much money is in the account after 5 years? How much money would be in the account if the interest rate was 0.1% instead?
If the interest is WITHDRAWN from the account at the end of each interest period, then it's $15,900.
If it's not, then interest will be compounded and the balance will be more than $15,900.
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