SOLUTION: Suppose you invest $1000 in a savings account that pays 2.5% annual interst. How much will be in the account after 5 years?

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Question 857721: Suppose you invest $1000 in a savings account that pays 2.5% annual interst. How much will be in the account after 5 years?
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
Interest = P * N * r

P = principal
n = number of years
r = rate of interest
P=1000
n= 5 years
r= 2.5% = 0.025
Interest = 1000 * 5 *0.025
=125
Amount = principal + interest
= 1000 +125
= $1125 after 5 years