SOLUTION: Tom invests €5600 for 6 years at 9% pa simple interest. How much is his investment worth at the end of the 6-year period?

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Question 1147446: Tom invests €5600 for 6 years at 9% pa simple interest. How much is his investment worth at
the end of the 6-year period?
Answer by ikleyn(52847) About Me  (Show Source):
You can put this solution on YOUR website!
.
A general formula for a simple interest account earning r percents per year is


    FV = A*(1 + r*t)


where A is the original deposit, FV is the future value, r is the annual rate expressed as a decimal, t is the time (in years).


In our case,  A = 5600 euro; r = 0.09; t = 6 years.


The future value of the account after 6 years is 


    5600 + 0.09*5600*6 = 8624 euro.      ANSWER

Solved.