SOLUTION: carmelo puts 2,200.00 into a savings bonds that pay interest rate of 3.4%. how much money will the bonds be worth at the end of 5.5 years.

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: carmelo puts 2,200.00 into a savings bonds that pay interest rate of 3.4%. how much money will the bonds be worth at the end of 5.5 years.      Log On


   

Question 182220: carmelo puts 2,200.00 into a savings bonds that pay interest rate of 3.4%. how much money will the bonds be worth at the end of 5.5 years.
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
The formula for simple interest is
I+=+P%2Ar%2At where
I = Interest earned
P = Principle
r = annual rate
t = time in years
given:
P+=+2200
r+=+.034
t+=+5.5
I+=+2200%2A.034%2A5.5
I+=+411.4
This isn't the answer. The problem wants to know
what the bonds are worth after 5.5 years, and
that would be Interest earned + Principle
I+%2B+P+=+411.4+%2B+2200
I+%2B+P+=+2611.4
The bonds will be worth $2,611.40 in 5.5 years